Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Commissioners acknowledge GASB 75 actuarial valuation showing large liability decrease
Summary
Merrimack County commissioners acknowledged a GASB 75 actuarial report that showed an approximate $24 million decrease in retiree health-insurance liability, driven by a higher discount rate and benefit changes.
MERRIMACK COUNTY — The Board of Commissioners acknowledged receipt of the county’s GASB 75 actuarial valuation, which staff said shows a roughly $24 million reduction in the county’s liability for future health-insurance benefits.
County staff said the actuary attributed the decline to several factors: an increase in the discount rate tied to government bond yields, an adjustment in actual Medicare premiums paid, changes in payroll-growth assumptions and a contractual change removing retirement health insurance from union and nonunion contracts effective Jan. 1, 2023.
The presenter said the liability is projected to peak in 2049 at approximately $3.3 million in the budget for health insurance and then decline after the benefit is no longer provided. Commissioners described the packet as “thick” and acknowledged the report would be part of the county audit alongside other liabilities such as retirement accruals.
Commissioners moved, seconded and approved a motion to acknowledge receipt of the report; the meeting transcript shows approval by voice vote but does not record a roll-call tally.
Staff advised that fluctuations year to year are driven in part by volatility in the discount rate because the actuarial calculation uses present-value discounting. The board did not adopt policy changes at the meeting; it acknowledged the actuarial report for the record.
