Wayne County GASB

Wayne County
GASB 45 Actuarial Valuation

Fiscal Year Ending September 30, 2015
Prepared by:
Nyhart Actuary & Employee Benefits
8415 Allison Pointe Blvd., Suite 300
Indianapolis, IN 46250
Ph: (317) 845-3500
www.nyhart.com
Table of Contents
Page
Certification
Actuarys Notes
Executive Summary
GASB Disclosures
GASB Results
Schedule of Funding Progress
Schedule of Employer Contributions
Historical Annual OPEB Cost
8
9
10
10
Reconciliation of Actuarial Accrued Liability (AAL)
11
Employer Contribution Cash Flow Projections
12
Substantive Plan Provisions
14
Actuarial Methods and Assumptions
19
Summary of Plan Participants
24
Appendix
Comparison of Participant Demographic Information
27
28
Glossary
Decrements Exhibit
Retirement Rates Exhibit
Illustrations of GASB Calculations
Definitions
29
30
31
32
34
January 26, 2016

Tony Saunders
Wayne County
500 Griswold, 20th Floor
Detroit, MI 48226
This report summarizes the GASB actuarial valuation for Wayne County 2014/15 fiscal year. To the best of our knowledge, the report presents a fair position of
the funded status of the plan in accordance with GASB Statement No. 45 (Accounting and Financial Reporting by Employers for Post-Employment Benefits Other
Than Pensions). The valuation is also based upon our understanding of the plan provisions as summarized within the report.
The information presented herein is based on the actuarial assumptions and substantive plan provisions summarized in this report and participant information
furnished to us by the Plan Sponsor. We have reviewed the employee census provided by the Plan Sponsor for reasonableness when compared to the prior
information provided but have not audited the information at the source, and therefore do not accept responsibility for the accuracy or the completeness of the
data on which the information is based. When relevant data may be missing, we may have made assumptions we feel are neutral or conservative to the purpose
of the measurement. We are not aware of any significant issues with and have relied on the data provided.
The discount rate and other economic assumptions have been selected by the Plan Sponsor. Demographic assumptions have been selected by the Plan Sponsor
with the concurrence of Nyhart. In our opinion, the actuarial assumptions are individually reasonable and in combination represent our estimate of anticipated
experience of the Plan. All calculations have been made in accordance with generally accepted actuarial principles and practice.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following:
plan experience differing from that anticipated by the economic or demographic assumptions;
changes in economic or demographic assumptions;
increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization
period); and
changes in plan provisions or applicable law.
We did not perform an analysis of the potential range of future measurements due to the limited scope of our engagement.
To our knowledge, there have been no significant events prior to the current year's measurement date or as of the date of this report that could materially affect
the results contained herein.
1|Page
Neither Nyhart nor any of its employees has any relationship with the plan or its sponsor that could impair or appear to impair the objectivity of this report. Our
professional work is in full compliance with the American Academy of Actuaries Code of Professional Conduct Precept 7 regarding conflict of interest. The
undersigned meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
Should you have any questions please do not hesitate to contact us.
Randy Gomez, FSA, MAAA

Consulting Actuary
Evi Laksana, ASA, MAAA

Valuation Actuary
2|Page
Actuarys Notes
Wayne County GASB 45 Valuation

For Fiscal Year Ending September 30, 2015
The prior years GASB results shown in this report are different from the Countys audited financial statement disclosure for FYE September 30, 2014 due to the
October 1, 2013 Trust balance revision.
There are changes to the substantive plan provisions since the last full valuation, which was for the fiscal year ending September 30, 2014. All of the changes
described below decrease the Countys liabilities.
1. Retirees classified as MIRROR by the County are eligible to retain their current retiree health benefits, however, they are required to enroll in the HDHP
80/20 plan. The required retiree contribution is 10% of monthly premium. When the retiree turns 60, retiree contribution will be frozen at the applicable
10% of HDHP premium in that year until all covered members in the policy turns 65, at which time retiree health benefits come non-contributory. This
change is also applicable to Mental Health Authority (MHA) retirees.
2. For all other retirees classified as non-MIRROR by the County, the Countys only obligation to these retirees is in providing stipend benefits as described
in the Substantive Plan Provisions section. These retirees must obtain their health coverage elsewhere. This change is also applicable to Mental Health
Authority (MHA) retirees.
3. Non-POAM non-RMSA active employees who have at least 20 years of service as of October 1, 2015 are eligible for the stipend benefits. The Countys
only obligation to these employees at retirement is in providing stipend benefits as described in the Substantive Plan Provisions section. These
employees must obtain their health coverage elsewhere at retirement.
4. For POAM employees who are non-RMSA eligible:
a. Those who retire prior to October 1, 2017 are eligible to retain their current health benefits, however, they are required to enroll in the HDHP
80/20 plan. The required contribution at retirement is 10% of monthly premium. When the retiree turns 60, retiree contribution will be frozen at
the applicable 10% of HDHP premium in that year until all covered members in the policy turns 65, at which time retiree health benefits come
non-contributory.
b. Those who do not retire by October 1, 2017 are eligible to receive stipend benefits if they have at least 20 years of service as of October 1, 2017.
The Countys only obligation to these employees at retirement is in providing stipend benefits as described in the Substantive Plan Provisions
section. These employees must obtain their health coverage elsewhere at retirement.
5. RMSA active employees are not eligible to enroll in the Countys group health plan at retirement.
3|Page

Actuarys Notes
Two actuarial assumptions have been updated since the last full valuation, which was for the fiscal year ending September 30, 2014:
1. Amortization type for Countys liabilities has been changed to a closed period from an open period (the remaining amortization period as of September
30, 2015 is 30 years). A closed period amortization is a more conservative and prudent approach to take for pre-funding long-term obligations, such as
OPEB liabilities. This change has no impact in this years Countys liabilities or Annual Required Contribution.
2. Health care trend rates have been reset to the same initial trend used in the last valuation. Comparison of actual and expected trend rates are as shown
below. This change caused an increase in the Countys liabilities.
2016
Prior
Valuation
8.5%
Current
Valuation
9.0%
2021
Prior
Valuation
6.0%
Current
Valuation
6.5%
2017
8.0%
8.5%
2022
5.5%
6.0%
2018
7.5%
8.0%
2023
5.0%
5.5%
2019
7.0%
7.5%
2024+
5.0%
5.0%
2020
6.5%
7.0%
FYE
FYE
4|Page

Actuarys Notes
Summary of Results (Results are shown in thousands)

Presented below is the summary of GASB 45 results for the fiscal year ending September 30, 2015 compared to the prior fiscal year as shown in GASB 45
actuarial valuation report for FYE September 30, 2014 revised in November 2015 for corrected Actuarial Value of Assets.
As of October 1, 20131
Total
MHA
County
Total
MHA
County
Actuarial Accrued Liability (AAL)
1,333,744
8,075
1,325,669
476,656
5,432
471,224
Actuarial Value of Assets (AVA)
9,106
9,106
9,106
9,106
Unfunded AAL
1,324,638
8,075
1,316,563
467,550
5,432
462,118
Funded Ratio
0.7%
0.0%
0.7%
1.9%
0.0%
FY 2013/14
Total
1.9%
FY 2014/15
MHA
County
Total
MHA
County
Annual Required Contribution
77,623
693
76,930
20,602
489
20,113
Annual OPEB Cost
77,613
628
76,985
20,582
403
20,179
Annual Employer Contribution
35,901
309
35,592
16,386
201
16,185
As of September 30, 2014

Total
Net OPEB Obligation
256,887
MHA
$
1,719
As of September 30, 2015

County
255,168
Total
$
261,083
MHA
$
1,921
County
$
259,162
Total
MHA
County
Total Active Participants2
1,385
1,385
Total Retiree Participants
5,102
56
5,046
Based on FYE 9/30/2014 GASB Report updated in November 2015, which are different from the Countys audited financial statement disclosure for FYE September 30, 2014 due to the October 1,
2013 Trust balance revision.
2 Total active participants above only includes active employees who are either eligible for subsidized retiree health benefits or stipend benefits.
5|Page

Actuarys Notes
Below is a breakdown of total GASB 45 liabilities allocated to past, current, and future service as of October 1, 2014 compared to the prior year.
(Results are shown in thousands)
Present Value of Future Benefits
Total
$
1,604,299
MHA
$
8,075
County
$
1,596,224
Active Employees
717,307
717,307
Retired Employees
886,992
8,075
878,917
Actuarial Accrued Liability
1,333,744
8,075
1,325,669
Active Employees
446,752
446,752
Retired Employees
886,992
8,075
878,917
Normal Cost
23,662
Present Value of Future Benefits (PVFB) is the amount

needed as of October 1, 2013 and 2014 to fully fund the
Countys retiree health care subsidies for existing and future
retirees and their dependents assuming all actuarial
assumptions are met.
23,662
Actuarial Accrued Liability (AAL) is the portion of PVFB
Future Normal Cost
Present Value of Future Benefits
246,893
Total
$
485,971
MHA
$
5,432
246,893
County
$
480,539
considered to be accrued or earned as of October 1, 2013 and

2014. This amount is a required disclosure in the Required
Supplementary Information section.
Normal Cost is the portion of the total liability amount that

is attributed and accrued for current years active employee
service by the actuarial cost method.
Active Employees
57,215
57,215
Future Normal Cost is the portion of the total liability
Retired Employees
428,756
5,432
423,324
amount that is attributed to the future employee by the

actuarial cost method.
Actuarial Accrued Liability
476,656
5,432
471,224
Active Employees
47,900
47,900
Retired Employees
428,756
5,432
423,324
Normal Cost
1,680
1,680
Future Normal Cost
7,635
7,635
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Actuarys Notes
Below is a breakdown of total GASB 45 Actuarial Accrued Liability (AAL) allocated to pre and post Medicare eligibility. The liability shown below includes explicit
(if any) and implicit subsidies. Refer to the Substantive Plan Provisions section for complete information on the Plan Sponsors GASB subsidies.
Change in AAL - County
Active Pre-Medicare
Total
$
Active Post-Medicare
Total Active AAL
93,508
MHA
$
County
$
93,508
353,244
353,244
446,752
446,752
Millions

$1,200
$800
$1,102
Retirees Pre-Medicare
Retirees Post-Medicare
Total Retirees AAL
130,526
396
$400
130,130
756,466
7,679
748,787
886,992
8,075
878,917
$224
$375
$96
$0
Pre-Medicare Cost
$
Active Pre-Medicare
Total
$
Active Post-Medicare
Total Active AAL
Retirees Pre-Medicare
1,333,744
Retirees Post-Medicare
Total Retirees AAL
21,719
8,075
MHA
$
1,325,669
21,719
26,181
47,900
47,900
238
74,679
353,839
5,194
348,645
428,756
5,432
423,324
476,656
5,432
471,224
October 1, 2014
$8,000
$6,000
$4,000
$7,679
$5,194
$2,000
$396
Total AAL
Post-Medicare Cost
Change in AAL - MHA
County
26,181
74,917
October 1, 2013
Thousands
Total AAL
$238
$0
Pre-Medicare Cost
October 1, 2013
Post-Medicare Cost
October 1, 2014
7|Page

GASB Disclosures
GASB Results (Results are shown in thousands)

FY 2013/143
Required Supplementary
Information
AAL beg. of year
MHA
$
Funded Ratio
8,075
N/A
UAAL as a % of covered payroll
N/A
ARC
Amortization of the UAAL
Total
Net OPEB Obligation (NOO)

ARC as of end of year
666
693
181,566
1,324,638
181,566
73,971
76,930
N/A
74,637
77,623
0
470
489
467,550
76,105
1.9%
$
Total
1,680
17,659
$
76,105
614.3%
19,339
1,680
18,129
19,809
774
$
20,113
793
$
County
489
476,656
(9,106)
County
MHA
77,623
462,118
19
$
607.2%
470
$
471,224
1.9%
MHA
23,662
Total
(9,106)
N/A
Total
76,930
5,432
2,986
$
0.0%
50,975
2,959
$
Total
23,662
5,432
0
729.6%
50,309
$
0.7%
County
693
1,333,744
County
20,602
Total
20,113
20,602
56
8,551
8,607
69
10,207
10,276
(121)
(8,496)
(8,617)
(155)
(10,141)
(10,296)
628
76,985
77,613
403
20,179
20,582
ER contribution for pay-go cost
(309)
(35,592)
(35,901)
(201)
(16,185)
(16,386)
ER contribution for pre-funding
Change in NOO
NOO as of beginning of year

NOO as of end of year
3
1,316,563
MHA
(9,106)
725.1%
MHA
Interest on NOO to end of year

NOO amortization adjustment
to the ARC
Annual OPEB cost
27
$
0.7%
666
$
1,325,669
County
0
Interest to end of year

ARC
MHA
$
Total
(9,106)
0.0%
Covered payroll
Normal cost beg. of year
0
$
FY 2014/15
County
8,075
AVA beg. of year

Unfunded AAL (UAAL)
Annual Required
Contribution (ARC) is the
319
1,400
$
1,719
41,393
213,775
$
255,168
41,712
215,175
$
256,887
202
1,719
$
1,921
3,994
255,168
$
259,162
4,196
256,887
261,083
Based on FYE 9/30/2014 GASB Report updated in November 2015, which are different from the Countys audited financial statement disclosure
for FYE September 30, 2014 due to the October 1, 2013 Trust balance revision.
annual expense recorded in the

income statement under GASB
45 accrual accounting. It replaces
the cash basis method of
accounting recognition with an
accrual method. The GASB 45
ARC is higher than the pay-asyou-go cost because it includes
recognition of employer costs
expected to be paid in future
accounting periods.
Pay-as-you-go Cost is the

expected total employer cash
cost for the coming period based
on all explicit and implicit
subsidies. It is also the amount
recognized as expense on the
Income Statement under pay-asyou-go accounting.
Net OPEB Obligation is the
cumulative difference between
the annual OPEB cost and
employer contributions. This
obligation will be created if cash
contributions are less than the
current year expense under GASB
45 accrual rules.
The net obligation is recorded as
a liability on the employers
balance sheet which will reduce
the net fund balance.
The value of implicit subsidies is
considered as part of cash
contributions for the current
period. Other cash expenditures
that meet certain conditions are
also considered as contributions
for GASB 45 purposes.
8|Page

GASB Disclosures
Summary of GASB 45 Financial Results

Presented below is the summary of GASB 45 results for the fiscal year ending September 30, 2015 and prior fiscal years. FY 2012/13 information is combined for
County and Mental Health Authority (MHA).
Schedule of Funding Progress
As of
October 1, 2014
Actuarial Accrued
Liability (AAL)
Actuarial Value of Assets

(AVA)
Unfunded Actuarial
Accrued Liability (UAAL)
Funded
Ratio
Covered Payroll
UAAL as % of
Covered Payroll
C=A-B
D=B/A
F=C/E
476,656
9,106
467,550
1.9%
76,105
MHA
5,432
5,432
0.0%
N/A
County
471,224
9,106
462,118
1.9%
76,105
607.2%
1,333,744
9,106
1,324,638
0.7%
181,566
729.6%
MHA
8,075
8,075
0.0%
N/A
County
1,325,669
9,106
1,316,563
0.7%
181,566
1,568,535
1,568,535
0.0%
N/A
October 1, 20134
October 1, 2012
614.3%
N/A
N/A
725.1%
N/A
9|Page

GASB Disclosures
Summary of GASB 45 Financial Results

Schedule of Employer Contributions
FYE
September 30, 2015
Employer
Contributions
Annual Required
Contribution (ARC)
% of ARC Contributed
C=A/B
16,386
20,602
79.5%
201
489
41.1%
16,185
20,113
80.5%
35,901
77,623
46.3%
MHA
309
693
44.6%
County
35,592
76,930
46.3%
53,908
89,439
60.3%
MHA
County
September 30, 2014
September 30, 2013
Historical Annual OPEB Cost

As of
September 30, 2015
Annual OPEB Cost
% of Annual OPEB Cost

Contributed
Net OPEB Obligation
20,582
79.6%
261,083
MHA
403
49.9%
1,921
County
20,179
80.2%
259,162
77,613
46.3%
256,887
MHA
628
49.2%
1,719
County
76,985
46.2%
255,168
89,486
60.2%
216,5716
September 30, 20144
September 30, 2013
6 Original Net OPEB Obligation balance as of September 30, 2013 before the reversal due to elimination of benefit for MHA active employees.
10 | P a g e

Reconciliation of Actuarial Accrued Liability
The Actuarial Accrued Liability (AAL) is expected to change on an annual basis as a result of expected and unexpected events. Under normal circumstances, it is
generally expected to have a net increase each year. Below is a list of the most common events affecting the AAL and whether they increase or decrease the
liability.
Reconciliation of AAL shows what the actuary
expects the actuarial accrued liability to be at the
beginning of the following fiscal year based on
current assumptions and plan provisions. The
expected end of year AAL will change as actual plan
experience varies from assumptions. Generally, the
AAL is expected to have a net increase each year.
Expected Events
Increases in AAL due to additional benefit accruals as employees continue to earn service each year
Increases in AAL due to interest as the employees and retirees age
Decreases in AAL due to benefit payments
Unexpected Events
Increases in AAL when actual premium rates increase more than expected. A liability decrease occurs when premium rates increase less than expected.
Increases in AAL when more new retirements occur than expected or fewer terminations occur than anticipated. Liability decreases occur when the
opposite outcomes happen.
Increases or decreases in AAL depending on whether benefit provisions are improved or reduced.
FY 2013/147
MHA
AAL as of beginning of year
Normal cost as of beginning of year

Expected benefit payments during the year
Interest adjustment to end of year
Expected AAL as of end of year
Actuarial (gain) / loss due to experience

Preliminary AAL as of end of year reflecting
actual experience
Actuarial (gain) / loss due to assumption

changes
County
$
1,325,669
Total
$
1,333,744
MHA
$
5,432
County
$
471,224
Total
$
476,656
23,662
23,662
1,680
1,680
(303)
(34,891)
(35,194)
(201)
(16,185)
(16,386)
317
53,282
53,599
213
18,596
18,809
8,089
6,270
Actuarial (gain) / loss due to plan provisions
Actual AAL as of end of year
8,075
FY 2014/15
14,359
1,367,722
463,529
$
1,831,251
1,375,811
469,799
$
1,845,610
5,444
0
$
5,444
475,315
0
$
475,315
480,759
0
480,759
(9,346)
(1,416,179)
(1,425,525)
419
56,152
56,571
5,432
471,224
476,656
5,444
475,315
480,759
Actuarial Accrued Liability (AAL) as of beginning of year was actuarially rolled-back from end of year AAL on a no gain/loss basis.
11 | P a g e

The below projections show the actuarially estimated employer-paid contributions for retiree health benefits for the next ten years. Results are shown
separately for current /future retirees and gross claim costs/retiree contributions. These projections include explicit and implicit subsidies. (Results are shown in
thousands)
Projected Employer Pay-go Cost - County
Future Retirees8
Total
2015
15,746
439
16,185
2016
17,163
479
17,642
2017
17,352
883
18,235
2018
17,794
1,492
19,286
2019
18,219
1,824
20,043
2020
18,641
2,097
20,738
2021
19,017
2,395
21,412
2022
19,492
2,677
22,169
2023
19,813
3,085
22,898
2024
19,913
3,397
23,310
2015
Estimated
Claims Costs
$
16,796
Retiree
Contributions
$
611
Net EmployerPaid Costs

$
16,185
2016
18,308
666
17,642
2017
18,918
683
18,235
2018
19,979
693
19,286
2019
20,717
674
20,043
2020
21,394
656
20,738
2021
22,044
632
21,412
2022
22,793
624
22,169
2023
23,495
597
22,898
2024
23,884
574
23,310
FYE
Current Retirees
$25
$20
$15
$10
$5
$0
2015
2016
2017
2018
2019
2020
2021
Current Retirees Future Retirees
2022
2023
2024
2023
2024
Claims and Cost Sharing Projections - County

Millions
FYE
Millions
COUNTY
$25
$20
$15
$10
$5
$0
2015
2016
2017
2018
2019
Retiree Contributions
2020
2021
2022
Net Employer Paid Costs
Projections for future retirees do not take into account future new hires.
12 | P a g e

The below projections show the actuarially estimated employer-paid contributions for retiree health benefits for the next ten years. Results are shown
separately for current /future retirees and gross claim costs/retiree contributions. These projections include explicit and implicit subsidies. (Results are shown in
thousands)
Projected Employer Pay-go Cost - MHA
MHA
Total
201
201
2016
219
219
2017
231
231
2018
232
232
2019
246
246
2020
251
251
2021
259
259
2022
266
266
2023
281
281
2024
289
289
2015
Estimated
Claims Costs
$
206
Retiree
Contributions
$
5
Net EmployerPaid Costs

$
201
2016
224
219
2017
236
231
2018
235
232
2019
249
246
2020
253
251
2021
260
259
2022
267
266
2023
281
281
2024
289
289
Thousands
Future Retirees9
2015
FYE
Current Retirees
$240
$180
$120
$60
$0
2015
2016
2017
2018
2019
2020
2021
Current Retirees Future Retirees
2022
2023
2024
2023
2024
Claims and Cost Sharing Projections - MHA

$300
Thousands
FYE
$300
$240
$180
$120
$60
$0
2015
2016
2017
2018
2019
2020
2021
2022
Net Employer Paid Costs
Projections for future retirees do not take into account future new hires.
13 | P a g e

Retiree Health Benefits
Non-POAM employees who have at least 20 years of service as of October 1, 2015 are eligible for stipend
benefits once they meet the eligibility requirements noted in the next page.
POAM employees who retire prior to October 1, 2017 by meeting the eligibility requirements noted in the next
page are eligible to retain their current retiree health benefits but they are required to enroll in the HDHP 80/20
plan and pay the required contributions as described on page 17. POAM employees who retire on/after October
1, 2017 are eligible for stipend benefits if they have at least 20 years of service as of October 1, 2017.
Existing retirees classified as MIRROR by the County are eligible for stipend benefits. Existing retirees classified
as non-MIRROR by the County are eligible to retain their current retiree health benefits but they are required to
enroll in the HDHP 80/20 plan and pay the required contributions as describe on page 17.
Stipend Benefits
Employees and existing retirees eligible for stipend benefits are required to seek health coverage elsewhere and
the Countys only obligation to this group is in providing the stipend benefits as noted below.
Prior to Medicare eligibility, the monthly stipend benefits provided by the County are as shown in the table
below.
Retiree only
Retiree + Spouse (or 1

Dependent)
AGI*
Stipend
AGI*
Stipend
< $30k
$ 100
< $35k
$30 to $45k
$ 200
>= $45k
$ 400
Family
AGI*
Stipend
$ 150
< $40k
$ 150
$35 to $65k
$ 300
$40 to $55k
$ 300
>= $65k
$ 750
$55 to $70k
$ 400
>= $70k
$ 800
Upon Medicare eligibility, the monthly stipend is $130 per person, increasing annually based on percentage
increase in general wage levels for non-supervisory AFSCME for the annual period being calculated, but not
more than 2%. If there is negative % change from 1/1/2015 in general wage levels for non-supervisory AFSCME,
stipend may decrease but not less than $0. The maximum stipend shall never exceed 12.5% of the starting
stipend (or $146.25). Additionally, there is a $5 monthly stipend that will replace the existing $29.50 Medicare
Part B reimbursement. The additional $5 monthly stipend is not expected to increase in the future.
* AGI is short for Adjusted Gross Income. For existing retirees, their AGI is based on their pension benefit. For
future retirees, they are assumed to receive the maximum stipends shown above.
14 | P a g e

Eligibility
Employees in retirement plans 1 through 6 are eligible for subsidized retiree health benefits if they meet the age
and service requirements of the applicable retirement plan. Employees hired or rehired on/after December 1,
1990 must have 30 years of service at retirement to be eligible for retiree health benefits, unless otherwise
noted in the union contracts.
Based on the retirement plans normal eligibility requirements and union contract languages, the retiree health
benefits eligibility requirements are as follows:
Union Contract
AFSCME Supervisory and Non-Supervisory
DOH < 12/1/1990
12/1/1990 DOH < 11/16/2001
DOH 11/16/2001
Building & Construction Trades
DOH < 7/1/1991
7/1/1991 DOH < 10/1/2001
DOH 10/1/2001
Dieticians & Nutritionists
DOH < 12/1/1990
12/1/1990 DOH < 12/23/2002
DOH 12/23/2002
Executive & Non-Executive Exempt
DOH < 12/1/1990
12/1/1990 DOH < 12/23/2002
DOH 12/23/2002
Government Admin Association
DOH < 12/1/1991
12/1/1991 DOH < 10/1/2001
DOH 10/1/2001
Retirement
Plan*
Retiree Health Eligibility
DB 2 or DC 4
DB 2 or DC 4
Hybrid 5
55/25, 60/15, 65/8

55/30, 60/15
30 YOS
DB 2
DB 2 or DC 4
Hybrid 5
55/25, 60/15, 65/5

60/15, 55/30
60/15, 30 YOS
DC 4
DC 4
Hybrid 5
55/25, 60/15, 65/8

60/15, 55/30
60/15, 30 YOS
DC 4
DC 4
Hybrid 5
55/25, 60/15, 65/8

55/30
55/30
DB 2 or DC 4
DB 2 or DC 4
Hybrid 5
55/25, 60/15, 65/8

60/15, 30 YOS
60/15, 30 YOS
* We did not have the actual retirement plan enrollment information so we have assumed the retirement plan
enrollment above based on employees hire date.
15 | P a g e

Eligibility
Retiree health benefits eligibility requirements (continued):

Union Contract
Government Bar Association
DOH < 12/1/1990
12/1/1990 DOH < 2/28/2002
DOH 2/28/2002
IUOE Local 324
DOH < 12/1/1990
12/1/1990 DOH < 8/19/2002
DOH 8/19/2002
Judicial Attorneys Association
DOH < 12/1/1991
DOH 12/1/1991
POAM
DOH < 12/1/1990
12/1/1990 DOH < 10/1/2001
DOH 10/1/2001
AFSCME 3317 Lieutenants & Sergeants
DOH < 12/1/1990
12/1/1990 DOH < 10/1/2001
DOH 10/1/2001
Unite Here Local 24
DOH < 12/1/1990
12/1/1990 DOH < 5/21/2002
DOH 5/21/2002
Retirement
Plan*
Retiree Health Eligibility
DB 2 or DC 4
DB 2 or DC 4
Hybrid 5
55/25, 60/20, 65/8

60/15, 55/30
60/15, 30 YOS
Hybrid 5
DC 4
DC 4
55/25, 60/15, 65/8

60/15, 55/30
60/15, 30 YOS
Hybrid 5
Hybrid 5
55/25, 60/20, 65/8, 30 YOS

60/15, 30 YOS
DB 2 or DC 4
DB 2 or DC 4
Hybrid 5
55/25, 60/20, 65/8, 30 YOS

55/30
30 YOS
DB 2
DB 2 or DC 4
Hybrid 5
25 YOS
60/15, 30 YOS
30 YOS
DB 2 or DC 4
DB 2 or DC 4
Hybrid 5
55/25, 60/20, 65/8

55/30, 60/15
30 YOS
* We did not have the actual retirement plan enrollment information so we have assumed the retirement plan
enrollment above based on employees hire date.
16 | P a g e

Retiree Medical Savings Account (RMSA)
Employees hired on/after the cut-off dates shown in the table below are only eligible for Retiree Medical Savings
Account (RMSA) benefit. While actively working, these employees contribute 2% of bi-weekly payroll (or a fixed
dollar amount as specified by the CBA) and the County will contribute 5% of bi-weekly payroll (or a fixed dollar
amount as specified by the CBA). At retirement these employees may utilize the RMSA balance to purchase
retiree health benefits through the County by paying the full cost of coverage.
Union Contract
AFSCME Supervisory
AFSCME Non-Supervisory
Building & Construction Trades
Dieticians & Nutritionists
Executive & Non-Executive Exempt
Government Admin Association
Government Bar Association
IUOE Local 324
Judicial Attorneys Association
Nurse Unit 1
POAM
AFSCME 3317 Lieutenants & Sergeants
Unite Here Local 24
Subsidized Retiree Health

Eligibility Cut-Off Date
Hired on/after 4/4/2008
Spouse Benefit
Surviving spouse can continue coverage after the death of the retiree or active employees eligible to retire.
County subsidy and/or stipend benefit continues to surviving spouse upon death of the retiree or active
employee eligible to retire.
Life Insurance
The County pays for life insurance benefits at retirement. Majority of current retirees have $5,000 life insurance
benefits, but there are others who have varying life insurance benefit amounts. Liability for retirees life
insurance benefits paid by Prudential is not included in this report.
For future retirees who are eligible for stipend benefits, theres no subsidized life insurance benefits. For those
who are allowed to retain the subsidized retiree health benefits, they are eligible to receive $5,000 life insurance
benefits at retirement.
17 | P a g e

Retiree Cost Sharing
All retirees receiving subsidized retiree health benefits are required to enroll in the HDHP 80/20 plan and
contribute 10% of the monthly premium. When the retiree turns 60, retiree contribution will be frozen at the
applicable 10% monthly premium in that year until all covered members in the policy turn 65, at which time
retiree health benefits become non-contributory.
Medical Benefit
All retirees receiving subsidized retiree health benefits are required to enroll in the BCBS HDHP 80/20 plan. All
BCBS benefit options are self-insured.
The monthly premiums on October 1, 2015 for the BCBS HDHP 80/20 plan are as shown below.
BCBS HDHP 80/20
Single
2-person
1 Comp
$ 370.03
$ 888.08
$ 391.33
18 | P a g e

The actuarial assumptions used in this report represent a reasonable long-term expectation of future OPEB outcomes. As national economic and County
experience change over time, the assumptions will be tested for ongoing reasonableness and, if necessary, updated.
There are changes to substantive plan provisions and actuarial methods and assumptions since the last GASB valuation, which was for the fiscal year ending
September 30, 2014. Refer to the Actuarys Notes section for complete information on these changes. For the current year GASB valuation, we have updated the
per capita costs. We expect to update health care trend rates and per capita costs again in the next full GASB valuation, which will be for the fiscal year ending
September 30, 2017.
Measurement Date
September 30, 2015 with results actuarially rolled-back to October 1, 2014 on a no loss/no gain basis.
Discount Rate
4.0% partially funded
Payroll Growth
3.0% per year (used for amortization purposes only)
Inflation Rate
3.0% per year
Cost Method
Projected Unit Credit with linear proration to decrement
Amortization
County: Level % of pay over a 30-year closed period

MHA: Level dollar over a 15-year closed period
Census Data
Census information was provided by the County as of September 2015. We have reviewed it for reasonableness
and no material modifications were made to the census data except for the following:
Employees who were noted in the prior valuations census data as ineligible for retiree health benefits
due to employment category are assumed to stay ineligible in this years valuation.
Employer Funding Policy
Certain funds within the County will make an additional pre-funding contribution at the Countys discretion into
a Section 115 Trust that is equal to the difference between the Annual Required Contribution (ARC) allocated to
that fund and the pay-go costs. Allocation of the total ARC to each fund is currently done in the same proportion
as their share of retiree healthcare expenses. The Section 115 Trust is currently invested in a Master Demand
Account, which is a liquid account with a very low rate of return. The County has elected not to increase the
discount rate to reflect the partial pre-funding for these specific funds until they can draw up a Trust policy that
contains the recommended asset investment mix that is more aggressive than their current investment.
19 | P a g e

Mortality
RPH-2014 Total Dataset Mortality Table fully generational using scale MP-2014
Disability
None
Turnover Rate
Assumption used to project terminations (voluntary and involuntary) prior to meeting minimum retirement
eligibility for retiree health coverage.
Termination rates are based Wayne County actuarial valuation report as of September 30, 2011. Annual sample
rates are shown below.
Age
All Ages
YOS
0
1
2
3
4
5+
20
25
30
35
40
45
50
55
60
General
19.00%
16.00%
12.00%
11.00%
10.00%
9.50%
9.35%
6.64%
4.78%
4.52%
3.79%
3.07%
2.59%
0.00%
Sheriff
18.00%
18.00%
9.00%
7.00%
6.00%
4.50%
4.38%
3.22%
2.44%
2.34%
2.12%
1.70%
1.20%
0.00%
20 | P a g e

Retirement Rate
Annual retirement rates based on Wayne County actuarial valuation report as of September 30, 2011 are as
shown below.
Age
55
56
57
58 59
60
61 62
63
64
65 66
67
68
69
70+
Age-Based
General
30%
20%
15%
30%
40%
30%
30%
20%
30%
20%
40%
80%
100%
10
Sheriff
25%
25%
25%
25%
25%
25%
27%
27%
27%
27%
30%
30%
100%
YOS
30
31
32
33
34
35
36 38
39
40+
Service-Based
General
30%
20%
15%
30%
40%
50%
30%
20%
100%
Sheriff9
22%
20%
20%
30%
40%
50%
25%
25%
100%
Probabilities of retirement were increased to 50% once the member accrues the maximum benefit of 75% of
Average Final Compensation. For GASB valuation, this is assumed to happen when employees have 30 years of
service.
Health Care Trend Rates
FYE
2016
2017
2018
2019
2020
Medical/Rx
9.0%
8.5%
8.0%
7.5%
7.0%
FYE
2021
2022
2023
2024+
Medical/Rx
6.5%
6.0%
5.5%
5.0%
The initial trend rate was based on a combination of

employer history, national trend surveys, and
professional judgment.
The ultimate trend rate was selected based on
historical medical CPI information.
Pre-65 stipends will remain the same in the future. Post-65 stipends are assumed to increase by 2.0% beginning
in 2016 until it reaches the maximum stipend amount of $146.25 at the end of 2021 at which time it is assumed
to remain the same.
10
POAM employees who are eligible to retire prior to October 1, 2017 are assumed to retire when they are first eligible.
21 | P a g e

Retiree contributions are assumed to increase 5% annually.
Per Capita Costs
Annual per capita costs were calculated based on the 2015/16 premium rates actuarially increased using health
index factors and current enrollment. The costs are assumed to increase with health care trend rates. Annual
per capita costs by plan are as shown below:
Health Care Coverage Election Rate
Age
HDHP 80/20
< 55
$ 4,400
55 59
$ 5,400
60 64
$ 6,600
65 69
$ 3,500
70 74
$ 4,200
75 79
$ 4,800
80+
$ 5,600
The per capita costs represent the cost of coverage

for a retiree-only population.
Actuarial standards require the recognition of higher
inherent costs for a retired population versus an
active population.
100% of active employees eligible for subsidized retiree health benefits with current coverage are assumed to
continue coverage at retirement.
0% of active employees eligible for subsidized retiree health benefits without current coverage are assumed to
elect coverage at retirement.
100% of active employees eligible stipend benefits are assumed to receive stipend benefits at retirement.
100% of retirees with current coverage are assumed to continue coverage.
0% of retirees without current coverage are assumed to elect coverage in the future.
Spousal Coverage
Spousal coverage for current retirees is based on actual data.

70% of employees are assumed to be married at retirement. Husbands are assumed to be three years older than
wives.
22 | P a g e

Explicit Subsidy
Implicit Subsidy
GASB Subsidy Breakdown
The difference between (a) the premium rate and (b) the retiree contribution. Below is an example of the
monthly explicit subsidies for an active POAM under age 65 retiring before October 1, 2017.
Premium
Rate
A
Retiree
Contribution
B
Explicit
Subsidy
C=AB
Retiree
$ 370.03
$ 37.00
$ 333.03
Spouse
$ 518.05
$ 51.81
$ 466.24
The difference between (a) the per capita cost and (b) the premium rate. Below is an example of the monthly
implicit subsidies for an active POAM age 60 retiring before October 1, 2017 with spouse of the same age.
Per Capita
Cost
A
Premium
Rate
B
Implicit
Subsidy
C=AB
Retiree
$ 550.00
$ 370.03
$ 179.97
Spouse
$ 550.00
$ 518.05
$ 31.95
All employers that utilize premium rates based on

blended active/retiree claims experience will have an
implicit subsidy. There is an exception for Medicare
plans using a true community-rated premium rate.
Below is a breakdown of the GASB 45 monthly total cost

for an active POAM age 60 retiring prior to October 1,
2017 and his / her spouse of the same age.
GASB Subsidy Breakdown

$600
Retiree
$32
Spouse
Retiree contribution
37.00
51.81
Explicit subsidy
333.03
466.24
Implicit subsidy
179.97
31.95
Total monthly cost
550.00
520.00
$180
$400
$466
$200
$0
$333
$37
$52
Retiree
Spouse
Retiree contribution
Implicit subsidy
Explicit subsidy
23 | P a g e

Active Employees
Actives with coverage AND eligible for retiree
health benefits11
Single
Non-Single
Total
Avg. Age
Avg. Svc
Non POAM
250
518
768
53.0
25.4
43,286,689
POAM
149
466
615
45.2
17.5
32,753,259
Total
399
984
1,383
49.5
21.9
73,039,948
58.0
19.5
65,155
Actives without coverage AND eligible for retiree

health benefits10
Actives ineligible for retiree health benefits
(non-RMSA)12
With current coverage
Single
Non-Single
Total
Avg. Age
Avg. Svc
383
767
1,150
49.0
14.0
61,410,342
44.7
5.1
289,924
Without current coverage

(RMSA)13
Salary
Salary
Single
Non-Single
Total
Avg. Age
Avg. Svc
312
393
705
42.5
4.4
32,680,606
Without current coverage
21
31.6
3.9
692,666

(RMSA)14
166
56.0
18.6
8,663,530
With current coverage
Salary
11
For non-POAM, only those who have at least 20 years of service as of October 1, 2015 are included above. For POAM, there may be participants who are not going to be eligible for any benefits
at retirement. Out of the two actives who currently have no coverage, one POAM active employee is not going to be eligible for any benefits at retirement while the other non-POAM active
employee is assumed to receive stipend benefits at retirement.
12 These are non-RMSA eligible employees who are ineligible for either the subsidized retiree health benefits or stipend benefits because they do not have the required years of service as of
October 1, 2015. They have been excluded from the GASB valuation.
13 These are RMSA eligible employees who are no longer allowed to enroll in the Countys group health plan at retirement. There is no GASB liabilities for these employees and they have been
excluded from the GASB valuation.
14 These employees were indicated by the County as ineligible for retiree health benefits for various reasons. They have been excluded from the GASB valuation.
24 | P a g e

Retirees
County retirees with coverage
Single
Non-Single
Total
Avg. Age
481
686
1,167
61.1
Non-MIRROR
2,130
1,557
3,687
76.9
Total
2,611
2,243
4,854
73.1
Total
Avg. Age
MIRROR
42
66.4
Non-MIRROR
150
80.0
Total
192
77.0
MIRROR
County retirees without coverage
MHA retirees with coverage
Single
Non-Single
Total
Avg. Age
MIRROR
12
10
22
67.3
Non-MIRROR
15
16
31
74.7
Total
27
26
53
71.6
Total
Avg. Age
MIRROR
59.7
Non-MIRROR
78.3
Total
65.9
MHA retirees without coverage
MIRROR retirees who currently have no coverage are receiving subsidized life insurance benefits. Non-MIRROR retirees who have no coverage are receiving
stipend benefits. They have been included in the GASB valuation.
25 | P a g e

Active Age-Service Distribution

Including active employees who are eligible for either subsidized retiree health benefits or stipend benefits only.
Years of Service
Age
< 1
1 to 4
5 to 9
10 to 14
15 to 19
20 to 24
25 to 29
30 to 34
35 to 39
40 & up
Under 25
Total
0
25 to 29
30 to 34
28
27
35 to 39
20
48
31
40 to 44
12
36
73
77
10
45 to 49
14
40
170
97
11
50 to 54
11
23
140
135
28
341
90
69
24
199
19
92
28
55 to 59
56
105
208
338
60 to 64
35
25
65 to 69
10
10
530
348
83
11
10
1,385
70 & up
Total
80
147
175
26 | P a g e

Appendix
APPENDIX
27 | P a g e

Appendix
Comparison of Participant Demographic Information

The active participants number below may include active employees who currently have no health care coverage. Refer to Summary of Participants section for
an accurate breakdown of active employees with and without coverage.
Active Participants15
3,430
1,385
Retired Participants16
4,984
5,046
Age
48.0
49.5
Service
15.4
21.9
73.0
73.2
Averages for Active
Averages for Inactive

Age
15
Active participants enrollment as of October 1, 2014 above excludes those indicated as ineligible for retiree health benefits by the County and active MHA employees who are no longer eligible
for retiree health benefits. It includes active employees who are eligible for RMSA benefits only. Active participants enrollment as of October 1, 2015 includes only those who are eligible for either
subsidized retiree health benefits or stipend benefits.
16 Retired participants enrollment above include County and MHA retirees (regardless of whether they currently have coverage or not) but excludes spouses who are covered under the Countys
group health plan.
28 | P a g e

Glossary
Glossary
29 | P a g e

Glossary
Decrements Exhibit
The table below illustrates how actuarial assumptions can affect a long-term projection of future liabilities. Starting with 100 employees at age 35, the illustrated
actuarial assumptions show that 44.430 employees out of the original 100 are expected to retire and could elect retiree health benefits at age 55.
35
36
37
38
39
40
41
42
43
44
# Remaining
Employees
100.000
93.724
88.047
82.911
78.262
74.053
70.239
66.783
63.652
60.817
# of Terminations
per Year*
6.276
5.677
5.136
4.648
4.209
3.814
3.456
3.131
2.835
2.564
# of Retirements
per Year*
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
Total
Decrements
6.276
5.677
5.136
4.648
4.209
3.814
3.456
3.131
2.835
2.564
45
58.253
2.316
0.000
2.316
Age
# Remaining
Employees
55.938
53.853
51.987
50.331
48.880
47.627
46.567
45.690
44.983
44.430
Age
46
47
48
49
50
51
52
53
54
55
# of Terminations
per Year*
2.085
1.866
1.656
1.452
1.253
1.060
0.877
0.707
0.553
0.000
# of Retirements
per Year*
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
44.430
Total
Decrements
2.085
1.866
1.656
1.452
1.253
1.060
0.877
0.707
0.553
44.430
Decrements Exhibit
100
80
60
40
20
0
35
36
37
38
39
40
41
Actives
42
43
44
45
Total Terminations
46
47
48
49
50
51
52
53
54
55
Total Retirements
* The above rates are illustrative rates and are not used in our GASB calculations.
30 | P a g e

Glossary

The table below illustrates how actuarial assumptions can affect a long-term projection of future liabilities. The illustrated retirement rates show the number of
employees who are assumed to retire annually based on 100 employees age 55 who are eligible for retiree health care coverage. The average age at retirement
is 62.0.
55
Active
Employees
BOY
100.000
Annual
Retirement
Rates*
5.0%
5.000
Active
Employees
EOY
95.000
56
95.000
5.0%
4.750
90.250
57
90.250
5.0%
4.513
85.738
58
85.738
5.0%
4.287
81.451
59
81.451
5.0%
4.073
77.378
60
77.378
5.0%
3.869
73.509
61
73.509
5.0%
3.675
69.834
62
69.834
30.0%
20.950
48.884
63
48.884
15.0%
7.333
41.551
64
41.551
15.0%
6.233
35.318
65
35.318
100.0%
35.318
0.000
Age
# Retirements
per Year

100
80
60
40
20
0
55
56
57
58
59
Actives
60
61
62
63
64
65
Total Retirements
* The above rates are illustrative rates and are not used in our GASB calculations.
31 | P a g e

Glossary
Illustration of GASB Calculations

The purpose of the illustration is to familiarize non-actuaries with the GASB 45 actuarial calculation process.
I.
Facts
1. The employer provides subsidized retiree health coverage worth $100,000 to employees retiring at age 55 with 25 years of service. The employer funds
for retiree health coverage on a pay-as-you-go basis.
2. Employee X is age 50 and has worked 20 years with the employer.
3. Retiree health subsidies are paid from the general fund assets which are expected to earn 4.5% per year on a long-term basis.
4. Based on Employee Xs age and sex he has a 98.0% probability of living to age 55 and a 95.0% probability of continuing to work to age 55.
II. Calculation of Present Value of Future Benefits

Present Value of Future Benefits represents the cost to finance benefits payable in the future to current and future retirees and beneficiaries, discounted to
reflect the expected effects of the time value (present value) of money and the probabilities of payment.
Value
Description
A.
$100,000
Projected benefit at retirement
B.
80.2%
Interest discount for five years = (1 / 1.045)5
C.
98.0%
Probability of living to retirement age
D.
95.0%
Probability of continuing to work to retirement age
E.
$74,666
Present value of projected retirement benefit measured at employees current age = A x B x C x D
32 | P a g e

Glossary
Illustration of GASB Calculations (continued)

III. Calculation of Actuarial Accrued Liability
Actuarial Accrued Liability represents the portion of the Present Value of Future Benefits which has been accrued recognizing the employees past service with
the employer. The Actuarial Accrued Liability is a required disclosure in the Required Supplementary Information section of the employers financial statement.
Value
Description
A.
$74,666
Present value of projected retirement benefit measured at employees current age
B.
20
Current years of service with employer
C.
25
Projected years of service with employer at retirement
D.
$59,733
Actuarial accrued liability measured at employees current age = A x B / C
IV. Calculation of Normal Cost

Normal Cost represents the portion of the Present Value of Future Benefits allocated to the current year.
Value
A.
$74,666
B.
25
C.
$2,987
Description
Present value of projected retirement benefit measured at employees current age
Projected years of service with employer at retirement
Normal cost measured at employees current age = A / B
V. Calculation of Annual Required Contribution

Annual Required Contribution is the total expense for the current year to be shown in the employers income statement.
Value
Description
A.
$2,987
Normal Cost for the current year
B.
$3,509
30-year amortization (level dollar method) of Unfunded Actuarial Accrued Liability using a 4.5% interest rate discount factor
C.
$292
D.
$6,788
Interest adjustment = 4.5% x (A + B)

Annual Required Contribution = A + B + C
33 | P a g e
Glossary

Definitions
GASB 45 defines several unique terms not commonly employed in the funding of pension and retiree health plans. The definitions of the terms used in the GASB
actuarial valuations are noted below.
1. Actuarial Accrued Liability That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of plan benefits and expenses
which is not provided for by the future Normal Costs.
2. Actuarial Assumptions Assumptions as to the occurrence of future events affecting health care costs, such as: mortality, withdrawal, disablement and
retirement; changes in compensation and Government provided health care benefits; rates of investment earnings and asset appreciation or depreciation;
procedures used to determine the Actuarial Value of Assets; characteristics of future entrants for Open Group Actuarial Cost Methods; and other relevant
items.
3. Actuarial Cost Method A procedure for determining the Actuarial Present Value of future benefits and expenses and for developing an actuarially
equivalent allocation of such value to time periods, usually in the form of a Normal Cost and an Actuarial Accrued Liability.
4. Actuarial Present Value The value of an amount or series of amounts payable or receivable at various times, determined as of a given date by the
application of a particular set of Actuarial Assumptions. For purposes of this standard, each such amount or series of amounts is:
a) adjusted for the probable financial effect of certain intervening events (such as changes in compensation levels, Social Security, marital status, etc.);
b) multiplied by the probability of the occurrence of an event (such as survival, death, disability, termination of employment, etc.) on which the payment is
conditioned; and
c) discounted according to an assumed rate (or rates) of return to reflect the time value of money.
5. Annual OPEB Cost An accrual-basis measure of the periodic cost of an employers participation in a defined benefit OPEB plan.
6. Annual Required Contribution (ARC) The employers periodic required contributions to a defined benefit OPEB plan, calculated in accordance with the
parameters.
7. Explicit Subsidy The difference between (a) the amounts required to be contributed by the retirees based on the premium rates and (b) actual cash
contribution made by the employer.
8. Funded Ratio The actuarial value of assets expressed as a percentage of the actuarial accrued liability.
9. Healthcare Cost Trend Rate The rate of change in the per capita health claims costs over time as a result of factors such as medical inflation, utilization of
healthcare services, plan design, and technological developments.
34 | P a g e
Glossary

Definitions (continued)
10. Implicit Subsidy In an experience-rated healthcare plan that includes both active employees and retirees with blended premium rates for all plan
members, the difference between (a) the age-adjusted premiums approximating claim costs for retirees in the group (which, because of the effect of age on
claim costs, generally will be higher than the blended premium rates for all group members) and (b) the amounts required to be contributed by the retirees.
11. Net OPEB Obligation The cumulative difference since the effective date of this Statement between annual OPEB cost and the employers contributions to
the plan, including the OPEB liability (asset) at transition, if any, and excluding (a) short-term differences and (b) unpaid contributions that have been
converted to OPEB-related debt.
12. Normal Cost The portion of the Actuarial Present Value of plan benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method.
13. Pay-as-you-go A method of financing a benefit plan under which the contributions to the plan are generally made at about the same time and in about the
same amount as benefit payments and expenses becoming due.
14. Per Capita Costs The current cost of providing postretirement health care benefits for one year at each age from the youngest age to the oldest age at
which plan participants are expected to receive benefits under the plan.
15. Present Value of Future Benefits Total projected benefits include all benefits estimated to be payable to plan members (retirees and beneficiaries,
terminated employees entitled to benefits but not yet receiving them, and current active members) as a result of their service through the valuation date
and their expected future service. The actuarial present value of total projected benefits as of the valuation date is the present value of the cost to finance
benefits payable in the future, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment.
Expressed another way, it is the amount that would have to be invested on the valuation date so that the amount invested plus investment earnings will
provide sufficient assets to pay total projected benefits when due.
16. Select and Ultimate Rates Actuarial assumptions that contemplate different rates for successive years. Instead of a single assumed rate with respect to, for
example, the investment return assumption, the actuary may apply different rates for the early years of a projection and a single rate for all subsequent
years. For example, if an actuary applies an assumed investment return of 8% for year 20W0, then 7.5% for 20W1, and 7% for 20W2 and thereafter, then 8%
and 7.5% select rates, and 7% is the ultimate rate.
17. Substantive Plan The terms of an OPEB plan as understood by the employer(s) and plan members.
35 | P a g e

Wayne County GASB

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GASB 45 Actuarial Valuation

Reconciliation of Actuarial Accrued Liability (AAL)

Employer Contribution Cash Flow Projections

Substantive Plan Provisions

Actuarial Methods and Assumptions

Summary of Plan Participants

January 26, 2016

Randy Gomez, FSA, MAAA

Evi Laksana, ASA, MAAA

Wayne County GASB 45 Valuation

Wayne County GASB 45 Valuation

Wayne County GASB 45 Valuation

Summary of Results (Results are shown in thousands)

Actuarial Accrued Liability (AAL)

Actuarial Value of Assets (AVA)

Annual Required Contribution

Annual OPEB Cost

Annual Employer Contribution

As of September 30, 2014

As of September 30, 2015

Total Active Participants2

Total Retiree Participants

Wayne County GASB 45 Valuation

Actuarial Accrued Liability

Present Value of Future Benefits (PVFB) is the amount

Future Normal Cost

considered to be accrued or earned as of October 1, 2013 and

Normal Cost is the portion of the total liability amount that

Future Normal Cost is the portion of the total liability

amount that is attributed to the future employee by the

Actuarial Accrued Liability

Future Normal Cost

Wayne County GASB 45 Valuation

Change in AAL - County

(Results are shown in thousands)

Change in AAL - MHA

Wayne County GASB 45 Valuation

GASB Results (Results are shown in thousands)

UAAL as a % of covered payroll

Net OPEB Obligation (NOO)

ER contribution for pay-go cost

ER contribution for pre-funding

NOO as of beginning of year

Interest on NOO to end of year

Interest to end of year

Normal cost beg. of year

AVA beg. of year

annual expense recorded in the

Pay-as-you-go Cost is the

Wayne County GASB 45 Valuation

Summary of GASB 45 Financial Results

Actuarial Value of Assets

Wayne County GASB 45 Valuation

Summary of GASB 45 Financial Results

September 30, 2015

September 30, 2013

Historical Annual OPEB Cost

Annual OPEB Cost

% of Annual OPEB Cost

Net OPEB Obligation

September 30, 20144

September 30, 2013

Wayne County GASB 45 Valuation