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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023
31
Note 11—Other postemployment benefits – VRS Group Life Insurance (GLI) Program (continued)
Since there was a change in proportionate share between measurement dates, a portion of the OPEB expense
above was related to deferred amount from changes in proportion.
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Net difference between projected and actual earnings on
OPEB plan investments
-
$
8,667
$
Change of assumptions
5,174
13,511
Change in proportionate share
8,974
16,225
Differences between expected and actual experience
10,984
5,565
Employer contributions subsequent to the measurement date
35,730
-
Total as of June 30, 2023
60,862
$
43,968
$
The $35,730 reported deferred outflows of resources related to OPEB resulting from the Commission’s
contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in
the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Years Ending June 30,
2024
(5,692)
$
2025
(3,808)
2026
(8,970)
Thereafter
(366)
(18,836)
$
Actuarial Assumptions and Other Inputs – The total OPEB liability was determined using the following assumptions
based on an actuarial valuation date of June 30, 2021, applied to all periods included in the measurement and
rolled forward to the measurement date of June 30, 2022:
Inflation
2.50%
Salary increases, including inflation:
Locality- general employees
3.50 – 5.35%
Investment rate of return, net of expense, including
inflation
6.75%*
* Administrative expenses as a percent of the market value of assets for the last experience study were found to
be approximately 0.06% of the market assets for all the VRS plans. This would provide an assumed investment
rate for U.S. GAAP purposes of slightly more than the assumed 6.75%. However, since the difference was
minimal, and a more conservative 6.75% investment return assumption provided a projected plan net position
that exceeded the projected benefit payments, the long-term expected rate of return on investments was
assumed to be 6.75% to simplify preparation of OPEB liabilities.
Mortality rates used for the various VRS OPEB plans are the same as those used for the actuarial valuations of
the VRS pension plans. The mortality rates are discussed in detail at Note 9.
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