Agenda

Plan Membership

At June 30, 2020, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries

currently receiving benefit payments 835
Active employees 2,554
Total 3,389

Funding Policy

The City’s funding policy includes financing the implicit subsidy on a pay-as-you-go basis,

as required by statute.

Actuarial Assumptions and Other Inputs

The total OPEB liability was determined

by an actuarial valuation as of June 30, 2020, using

Sensitivity of the Net NHRS Medical Subsidy OPEB Liability to Changes in the Discount
Rate
The following presents the net OPEB liability calculated using the discount rate of 6.75%,
as well as what the net 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 1%
Decrease Rate Increase

$ 25,448,565 $ 23,435,551 $ 21,687,860

required to contribute. The State Legislature has the authority to establish, amend, and
discontinue the contribution requirements of the Medical Subsidy plan.

Actuarial Assumptions and Other Inputs
Actuarial assumptions are the same as the New Hampshire Retirement System, which is

disclosed in Note 19.

Net OPEB Liability, Expense, and Deferred Outflows and (Inflows)

The City’s proportionate share of the net NHRS Medical Subsidy (net OPEB liability) as
of the measurement date of June 30, 2020 was $23,435,551.

New Hampshire Retirement System Medical Subsidy Plan Description

General Information about the OPEB Plan

The following OPEB disclosures for the New Hampshire Retirement Medical Subsidy Plan
are based on an actuarial valuation performed as of June 30, 2019, using a measurement
date of June 30, 2020.

Plan Description
In addition to the OPEB plan discussed previously, the City participates in the New

Deferred outflows of resources and deferred (inflows) of resources related to pensions will
be recognized in pension expense as follows:

Year ended June 30:

2022 $ (1,664,312)
2023 (1,458,395)
2024 (1,429,395)
2025 (1,645,060)
2026 63,931

Thereafter 184,873
Total $ (5,948,358)

Sensitivity of the Proportionate Share of the Net Pension Liability (Asset) to Changes in
the Discount Rate

The following presents the City’s proportionate share of the net pension liability (asset) cal-
culated using the discount rate of 7.00%, as well as what the City’s proportionate share of the
net pension liability (asset) would be if it were calculated using a discount rate that is
one percentage-point lower or one percentage-point higher than the current rate:

Current
1% Discount 1%
Decrease Rate Increase

Mortality rates in the July 1, 2020 valuation for disabled individuals reflects the Pub-2010
Public Retirement Plans Amount-Weighted Mortality Tables, projected to the valuation
date with Scale MP-2019, setback 10 years (previously was the RP-2014 Adjusted to 2006
Blue Collar Mortality Table projected to the valuation date with Scale MP-2018, setback 10
years).

Target Allocation

Changes in the Net Pension Liability - Board of Public Works

Increase (Decrease)

Summary of Significant Accounting Policies

The accounting policies of the System as reflected in the accompanying financial
statements for the year ended June 30, 2021 conform to generally accepted accounting
principles for public employee retirement systems (PERS). The more significant
accounting policies of the System are summarized below.

Basis of Accounting
Contributory retirement system financial statements are prepared using the accrual basis of

provisions are made by the Board of Trustees with the concurrence of the Board of
Aldermen. The Public Works Employees’ Retirement System does not issue independent
financial statements. Administrative costs are financed by Trust earnings.

Membership of each plan consisted of the following at July 1, 2020, the date of the latest
actuarial valuation: