KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLANS (OPEB) (CONTINUED)
Kentucky Employees Retirement System (KERS) OPEB Plan (Continued)
Hazardous (Continued)
The following presents the University’s allocated portion of the Hazardous net OPEB (asset) liability of the System, calculated using the healthcare cost trend rate of percent, as well as what the University’s allocated portion of the System’s net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate for Hazardous:
1% Decrease 1% Rate Increase
The University's Net OPEB Asset - Hazardous
(203,589) (176,652)
Current Healthcare
Employer's Portion of the Collective OPEB Liability
The University's proportionate share of the Nonhazardous net OPEB liability, as indicated in the prior table, is $1,621,939, or 0.206724%, which is a decrease of 0.057615% from the prior year allocation of 0.264339%. The University's proportionate share of the Hazardous net OPEB asset, as indicated in the prior table, is $176,652, or 0.084931%, which is a decrease of 0.028249% from the prior year allocation of 0.113180%. The net OPEB liability (asset) was allocated based upon the employers' allocation of amortization cost, as specified under the revised statutes and is further based upon their allocation of the normal cost portion of the required contribution, as allocated by actual salary for fiscal year ending June 30, 2023.
OPEB Expense
The University was allocated OPEB expense of $(1,111,666) related to the KERS Nonhazardous and $(40,082) related to the KERS Hazardous for the year ended June 30, 2024.
Deferred Outflows and Deferred Inflows
Since certain expense items are amortized over closed periods each year, the deferred portions of these items must be tracked annually. If the amounts serve to reduce OPEB expense they are labeled as deferred inflows. If they will increase OPEB expense they are labeled deferred outflows. The amortization of these amounts is accomplished on a level dollar basis, with no interest included in the deferred amounts. Experience gains/losses and the impact of changes in actuarial assumptions, if any, are amortized over the average remaining service life of the active and inactive System members at the beginning of the fiscal year. Investment gains and losses are amortized over a fixed five-year period.
(55)