The actuarial assumptions used in the valuation were based on the results of an actuarial
experience study as of June 30, 2010.
Discount Rate
The discount rate used to measure the total OPEB liability was 2.19%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current contribution rate.
Changes in the Total OPEB Liability
The following summarizes the changes to the total OPEB liability for the past year.
Total OPEB
Liability
Balances, beginning of year $ 54,347,990
Changes for the year:
Service cost 3,169,049
Interest 1,504,631
Differences between expected
and actual experience (4,278,544)
Changes of assumptions 2,181,485
Benefit payments (1,916,517)
Net changes 660,104
Balances, end of year $ 55,008,094
Changes of assumptions reflect a change in the discount rate from 2.66% in 2020 to 2.19%
in 2021.
As noted previously, with the exception of one group of retirees described below, the City
does not pay a direct subsidy towards their retiree’s health insurance premiums. In
accordance with RSA 100-A:50, retired employees shall be deemed to be part of the same
group as active employees for health insurance premium purposes, thereby resulting in a
so-called “blended rate”. The blended rate decreases the cost of insurance premiums for
retirees and increases the cost for active employees, thereby resulting in the City paying an
Implicit Subsidy.
The City’s Explicit Subsidy pertains to only one group of retirees. Teachers who have
retired after June 30, 1991 who have at least 20 years of service with the Nashua School
District and who are actually receiving retirements benefits under the New Hampshire
Retirement System, will have a portion of their health insurance premiums paid according to
a set schedule based on the years of service at retirement. The subsidy ranges from 20%
for a teacher retiree with 20 years of service at retirement to 50% for a teacher with 30+
years of service at retirement. The City’s Explicit Subsidy associated with each eligible
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