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  2. Finance Committee - Agenda - 8/17/2022 - P101

Finance Committee - Agenda - 8/17/2022 - P101

By dnadmin on Sun, 11/06/2022 - 21:45
Document Date
Fri, 08/12/2022 - 13:02
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 08/17/2022 - 00:00
Page Number
101
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__081720…

teacher retiree ends when the retiree is eligible for Medicare. The following table shows the
Explicit and Implicit Liability amounts:

Explicit Implicit Totals
Current Retirees $ 0.1 million $ 8.5 million $ 8.6 million
Future Retirees 4.9 million 41.5 million 46.4 million
Totals $ 5.0 million $ 50.0 millon $ 455.0 million

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability calculated using the current discount rate
of 2.19%, as well as what the total OPEB liability would be if it were calculated using a
discount rate that is one percentage-point lower or one percentage-point higher than the
current discount rate:

Current
1% Discount I%
Decrease Rate Increase

$ 59,997,794 $ 55,008,094 $ 50,485,216

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability calculated using the current healthcare cost
trend rates of 7.50%, as well as what the total OPEB liability would be if it were calculated
using healthcare cost trend rates that are one percentage-point lower or one percentage-
point higher than the current healthcare cost trend rates:

Current
Healthcare
1% Cost Trend 1%
Decrease Rates Increase

$48,430,670 $55,008,094 $62,800,198

93

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Finance Committee - Agenda - 8/17/2022 - P101

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