The following presents the University's allocated portion of the Hazardous net OPEB 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:
The University's net OPEB asset - hazardous
| Current Healthcare | ||
| 1% Decrease | Cost Trend Rate | 1% Increase |
|---|---|---|
| $ (80,654) | $ (11,750) | $ 72,398 |
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 $5,726,581, or approximately 0.25%. The University's proportionate share of the Hazardous net OPEB asset, as indicated in the prior table, is $11,750, or approximately 0.10%. The net OPEB liability/asset were distributed based on 2021 actual employer contributions to the plan.
Measurement Date: June 30, 2021 is the actuarial valuation date and measurement date upon which the total pension liability is based.
Changes in Assumptions and Benefit Terms: Since the prior measurement date, there have been no changes in actuarial assumptions or benefit terms.
Changes Since Measurement Date: There were no changes between the measurement date of the collective net OPEB liability and the employer's reporting date.
OPEB Expense: The University was allocated OPEB expense of $385,015 related to the KERS Nonhazardous and $10,303 related to the KERS Hazardous for the year ending June 30, 2022.
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. Deferred inflows and outflows as of the Measurement Date include:
66.