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Other Post -Employment Benefit Programs of the City of "" <br />Actuarial Valuation as of July 1, 2015 <br />Table 4 - Actuarial Methods and Assumptions <br />(Continued) <br />Spouse Coverage Active employees: 80% of future Tier t retirees and 60% <br />of all other future retirees are assumed to be married and <br />elect coverage for their spouse in retirement. Surviving <br />spouses are assumed to continue coverage until their <br />death. Husbands are assumed to be 3 years older than <br />their wives. <br />Retired participants: Existing elections for spouse <br />coverage are assumed to ;continue until the spouse's <br />death. Actual spouse agegare used, where known, if not, <br />husbands are assumed tq;abe 3 years older than their <br />wives. <br />Dependent Coverage Active employees:-; For service .retirernents,„ 25% are <br />assumed to cover dependents (othe`r ;than a, "spouse); for <br />disability .retirements;.35% are assurh)ed to cover <br />uepenaen[s tomer, man a; -spouse), uepenaeni coverage <br />is assurned,to end when the retiree reaches age 63. <br />Retired pan'igipants Retired participants with dependent <br />coverage are ,assU.med to retain that coverage until the <br />retiree reaches'ag"e 63. <br />Development of Age-related <br />Medical Premiums ..,Actual premiums rates for retirees and their spouses were <br />adjusted `to an age, -related basis by applying medical <br />claim cost factors developed from the data presented in <br />the report, '!Health Care Costs — From Birth to Death", <br />sponsored by the Society of Actuaries. A description of <br />the use of claims cost curves can be found in Bickmore's <br />Age Rating Methodology provided in Addendum 1 to this <br />report. <br />Representative claims costs derived from the dataset <br />provided by CalPERS for retirees not currently covered or <br />not expected to be eligible for Medicare appear on the last <br />page of this section (Table 4). <br />All current and future Medicare -eligible retirees are <br />assumed to be covered by plans that are rated based <br />solely on the experience of Medicare retirees. Therefore, <br />no implicit subsidy is calculated for Medicare -eligible <br />retirees. <br />Bckmore,¢' <br />