BICKMORE & ASSOCIATES, INC. 2-2016

Home Browse Search

Other Post -Employment Benefit Programs of the City of " " Actuarial Valuation as of July 1, 2015 Table 4 - Actuarial Methods and Assumptions (Continued) Healthcare Trend Medical plan premiums are assumed to increase once each year. The increases over the prior year's levels are assumed to be effective on the dates shown below: HSA Contribution Increases Flex Account Increases Effective January 1 Premium Increase . Effective January 1. Premium Increase 2016 8.00% 2021 5.50% 2017 7.50% 2022 5.00% 2018 7.00% 2023 4,50% 2019 6.50% 2024 4.50% 2020 1 6.00% 12025 & later 1 4.64% The required PEMHCA minimum„ employer contribution (MEG) is assumed toartcrease annually.. by 45F The HSA `contribution mace for those retirees who opt out of City -sponsored medical plan coverage is assumed to increase at the medial trend eatesffiove. No;inoreases'are„'assumed in the $1,500 annual Flex Medicare Eligibility Absent contrary data, all individuals are assumed to be eligible for Medicare Parts A and B at age 65. Participation Rates . 100°70 of ,Tier 1 active employees are assumed to elect coverage in'''retirement, continuing their current plan election. If not currently participating, we assumed the empfoyee will select coverage in the Kaiser HMO plan in the Other Southern rate area in retirement. All other active employees (i.e., not Tier 1) are assumed to elect coverage in retirement as follows: (a) 50%, if currently covered through the City's medical program, will continue in the current plan selected; (b) 40%, if eligible for but waiving coverage while active, are assumed to eleot coverage in the Kaiser HMO plan in the Other Southern rate area in retirement; and (c) 30%, if part-time or otherwise not eligible while active, but expected to qualify In retirement, are assumed to elect coverage in the Kaiser HMO plan in the Other Southern rate area in retirement. Retired participants: Existing medical plan elections are assumed to continue until the retiree's death. Bickmore