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:
| Current Healthcare | ||
| 1% Decrease | Cost Trend Rate | 1% Increase |
|---|---|---|
| $ (158,355) | $ (61,667) | $ 57,956 |
The University's Net OPEB liability – Hazardous
Employer's Portion of the Collective OPEB Liability: The University's proportionate share of the Non-hazardous net OPEB liability, as indicated in the prior table, is $5,397,902, or approximately 0.227%. The University's proportionate share of the Hazardous net OPEB liability (asset), as indicated in the prior table, is $(61,667), or approximately 0.185%. The net pension liabilities were distributed based on 2018 actual employer contributions to the plan.
Measurement Date: June 30, 2018 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. However, during the 2018 legislative session, House Bill 185 was enacted, which updated the benefit provisions for active members who die in the line of duty. The system shall now pay 100% of the insurance premium for spouses and children of all active members who die in the line of duty. The total OPEB liability as of June 30, 2018, is determined using these updated benefit provisions.
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 pension expense of $443,801 related to the KERS Non-Hazardous and $10,956 related to the KERS Hazardous for the year ending June 30, 2019.
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:
45.