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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023
27
Note 10—Other postemployment benefits, healthcare (continued)
The Commission receives health coverage through the City, which offers medical coverage to eligible retirees and
their eligible dependents through Anthem KeyCare Plans and Optima Health, a Humana Plan and Delta Dental.
Benefits include general inpatient and outpatient medical services, dental care, and prescription drugs.
Non-Medicare eligible retirees had a choice of three: Anthem KeyCare Plans: a PPO Plan, a HMO Plan, or a
High-Deductible Health Plan with a health savings account for the first half of the fiscal year. Optima Health Plans
were offered for the second half of the fiscal year. For those retirees eligible for Medicare, the Commission
provides the benefits available through the Humana Plan reduced by any amounts payable by Medicare.
Employees Covered by Benefit Terms – As of the June 30, 2022, measurement date, the following employees
were covered by the benefit terms of the plan:
Inactive members
30
Active members
50
Total covered employees
80
Total OPEB Liability – The Commission’s total OPEB liability of $3,676,459 was based on the total OPEB liability
as of the valuation date, June 30, 2023.
Actuarial Assumptions and Other Inputs – The total OPEB liability was determined using the following
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Inflation
2.5%
Salary increases, including inflation
3.0%
Healthcare cost trend rates
ranging from 2.32 to 8.16%
Retirees’ share of benefit-related costs
85% of projected health insurance
Mortality rates were based on the RP-2014 Healthy Annuitant Mortality Table for Males or Females, as
appropriate, with adjustments for mortality improvements based on scale BB.
The actuarial assumptions used in the July 1, 2022, valuation were based on the results of an actuarial experience
study for the period from July 1, 2021 through June 30, 2022.
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