3-08. N267524AN - Exhibit 4.PDF

August 7, 2025

Ms. Jeannette Ingersoll Treasurer School District of Lee County 2855 Colonial Blvd.

Fort Myers, Florida 33966

Re: GASB Statement No. 75: Other Post-Employment Benefits (OPEB) Actuarial Roll-forward for Fiscal Year Ending June 30, 2025

Dear Ms. Ingersoll:

Gabriel, Roeder, Smith & Company (GRS) has been engaged by the Lee County School District, Florida to perform an Actuarial Roll-forward of its Other Post-Employment Benefits (OPEB) provided to the District’s retiring employees. We are pleased to present the results herein.

This report provides information on behalf of the District in connection with Governmental Accounting Standards Board (GASB) Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.” This information is intended to assist in preparation of the financial statements of the District. Financial statements are the responsibility of management, subject to the auditor’s review. Please let us know if the auditor recommends any changes.

The calculation of the liability associated with the benefits described in this report was performed for the purpose of satisfying the requirements of GASB Statement No. 75. The calculation of the plan’s liability for this report is not applicable for funding purposes of the District’s OPEB plan. A calculation of the plan’s liability for purposes other than satisfying the requirements of GASB Statement No. 75 may produce significantly different results. This report may be provided to parties other than the District in its entirety and only with their permission. GRS is not responsible for unauthorized use of this report.

Our actuarial calculations for this report were prepared for the purpose of complying with the requirements of GASB Statement No. 75. These calculations have been made on a basis that is consistent with our understanding of this Statement.

The liabilities were determined as of the June 30, 2024 measurement date by rolling forward results of a June 30, 2023 actuarial valuation with the same census date. Unless otherwise noted, all assumptions, methods and plan provisions are the same as described in the June 30, 2023 actuarial valuation report dated August 9, 2024. These liabilities are used for GASB Statement No. 75 reporting for the reporting period ending June 30, 2025. If significant changes occur during the year, such as benefit changes or changes in assumptions or methods, these should be noted in the footnotes. They are also based upon plan provisions outlined in the June 30, 2023 actuarial valuation report and valid through June 30, 2024. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important relevant plan provisions are not described or referenced, or that conditions have changed since the calculations were made, you should contact the author of this report prior to relying on information in this report.

Revisions to assumptions include:

• Change in the interest rate for discounting of projected cash flows from 3.86% to 3.93% to reflect changes in the yields on 20-year general obligation municipal bonds between June 30, 2023 and June 30, 2024.

This report is based upon information furnished to us by the District for the June 30, 2023 actuarial valuation. This information was checked for internal consistency, but it was not audited. We are not responsible for the accuracy or completeness of the information provided by the District.

This report complements the June 30, 2023 actuarial valuation report dated August 9, 2024, and information herein should be considered along with the information from that report, especially for additional discussions of the nature of actuarial calculations and for more information related to participant data, economic, demographic, health care trend and morbidity assumptions, and benefit provisions.

The calculations are based upon assumptions regarding future events, which may or may not materialize. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements; and changes in plan provisions or applicable law. The scope of this report does not include an analysis of the potential range of such future measurements.

This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled.

This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge, the information contained in this report is accurate and fairly represents the actuarial position of the plan as of the valuation date. Assumptions used in preparation of this report are reasonable for the purpose of the measurement. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice, and with applicable statutes. If you have reason to believe that the information provided in this report is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the author of this report prior to making such decision.

Piotr Krekora and Travis N. Robinson are Members of the American Academy of Actuaries (MAAA).

These actuaries meet the Academy’s Qualification Standards to render the actuarial opinions contained herein.

The signing actuaries are independent of the plan sponsor.

We will be pleased to answer any questions pertaining to this report.

Respectfully submitted, GABRIEL, ROEDER, SMITH & COMPANY

Piotr Krekora, ASA, EA, MAAA, FCA Travis N. Robinson, ASA, EA, MAAA, FCA Senior Consultant & Actuary Senior Analyst & Actuary

The School District of Lee County, Florida OPEB for FYE June 30, 2025 4

Executive Summary

Actuarial Valuation Date June 30, 2023

Measurement Date of the Total OPEB Liability June 30, 2024

Employer's Fiscal Year Ending Date (Reporting Date) June 30, 2025

Membership as of the Valuation Date

Number of

- Retirees and Beneficiaries 1,707

- Inactive, Nonretired Members 0

- Active Members 10,092

- Total 11,799

Covered-Employee Payroll 667,220,244$

Total OPEB Liability

Total OPEB Liability 45,481,571$

Total OPEB Liability as a Percentage of Covered-Employee Payroll 6.82 %

Development of the Single Discount Rate

Long-Term Municipal Bond Rate* 3.93 %

Total OPEB Expense 2,535,691$

Summary of Deferred Outflows and Deferred Inflows of Resources by Source

Deferred Outflows of Resources

Deferred

Inflows of Resources

Difference between expected and actual experience 917,779$ 0$

Changes in assumptions and other inputs 2,163,171 9,784,230

Benefits Paid After the Measurement Date 1,783,133 0 Total 4,864,083$ 9,784,230$

*Source: Bond Buyer 20-Bond GO Index as of June 27, 2024. The “20-Bond GO Index” is based on 20 general obligation municipal bonds maturing in 20 years with mixed quality. In describing this index, the Bond

Buyer website notes that the bonds’ average credit quality is roughly equivalent to Moody’s Investors

Service’s Aa2 rating and Standard & Poor’s Corp.’s AA.

http://www.grsconsulting.com/

The School District of Lee County, Florida OPEB for FYE June 30, 2025 5

Schedule of Changes in Total OPEB Liability and Related Ratios Measurement Year Ended June 30, 2024

(Ultimately 10 Years Will Be Displayed)

Measurement period ending June 30, 2024 2023 2022 2021 2020 2019 2018 2017

A. Total OPEB Liability

1. Service cost 1,892,815$ 1,862,040$ 2,607,637$ 2,733,872$ 2,404,392$ 2,323,472$ 2,461,752$ 2,685,667$

2. Interest on the Total OPEB Liability 1,738,235 1,573,319 1,022,841 1,301,046 1,579,789 1,857,397 1,827,266 1,586,448

3. Changes of benefit terms 0 0 0 0 0 0 0 0

4. Difference between expected and actual experience 0 259,765 0 177,348 0 1,473,558 0 0

5. Changes in assumptions and other inputs (363,728) 1,103,463 (10,213,990) (671,490) 2,251,057 (1,575,972) (358,774) (3,892,800)

6. Benefit payments (1,849,841) (3,019,644) (3,593,330) (2,897,706) (4,968,847) (5,023,511) (2,597,226) (3,718,992)

7. Net change in Total OPEB Liability 1,417,481 1,778,943 (10,176,842) 643,070 1,266,391 (945,056) 1,333,018 (3,339,677)

8. Total OPEB Liability - Beginning 44,064,090 42,285,147 52,461,989 51,818,919 50,552,528 51,497,584 50,164,566 53,504,243

9. Total OPEB Liability - Ending 45,481,571$ 44,064,090$ 42,285,147$ 52,461,989$ 51,818,919$ 50,552,528$ 51,497,584$ 50,164,566$

B. Covered-Employee Payroll 667,220,244$ 667,220,244$ 596,207,533$ 493,312,820$ 553,081,335$ 545,004,178$ 535,169,541$ 522,477,873$

C. Total OPEB Liability as a Percentage of Covered-Employee Payroll 6.82 % 6.60 % 7.09 % 10.63 % 9.37 % 9.28 % 9.62 % 9.60 %

The School District of Lee County, Florida OPEB for FYE June 30, 2025 6

Notes to Schedule of Changes in Total OPEB Liability and Related Ratios

Valuation Date: June 30, 2023

Measurement Date: June 30, 2024

Methods and Assumptions Used to Determine Total OPEB Liability:

Actuarial Cost Method Entry Age Normal

Roll Forward Procedures The Total OPEB Liability was rolled forward twelve months from the

Valuation Date to the Measurement Date using standard actuarial techniques.

Inflation 2.50%

Discount Rate 3.93%

Salary Increases Salary increase rates used in the July 1, 2023 actuarial valuation of the

Florida Retirement System for Regular Class members; 3.4% - 7.8%, including inflation.

Retirement Age Retirement rates used in the July 1, 2023 actuarial valuation of the Florida

Retirement System for Regular Class members (separately for K-12

Instructional and non-K-12 Instructional). They are based on the results of a statewide experience study covering the period 2013 through 2018.

Mortality Mortality tables used in the July 1, 2023 actuarial valuation of the Florida

Retirement System for Regular Class members (separately for K-12

Instructional and non-K-12 Instructional). These rates were taken from adjusted Pub-2010 mortality tables published by SOA with generational mortality improvements using scale MP-2018. Adjustments to reference tables are based on the results of a statewide experience study covering the period 2013 through 2018.

Healthcare Cost Trend Rates Starting at 7.00% and gradually decreasing to an ultimate trend rate of

4.00% after 2050 according to a Getzen model.

Aging factors Based on the 2013 SOA Study "Health Care Costs - From Birth to Death".

Expenses Administrative expenses are included in the per capita health costs.

Other Information:

Notes There were no benefit changes during the year.

The following assumption changes have been reflected in the Schedule of Changes in the Total OPEB Liability for the measurement period ending

June 30, 2024:

- The discount rate was changed from 3.86% as of the beginning of the measurement period to 3.93% as of June 30, 2024.

The School District of Lee County, Florida OPEB for FYE June 30, 2025 7

Statement of OPEB Expense Employer Fiscal Year Ended June 30, 2025

Based on Measurement Year Ended June 30, 2024

OPEB Expense

1. Service Cost 1,892,815$

2. Interest on the Total OPEB Liability 1,738,235

3. Current-Period Benefit Changes 0

4. OPEB Plan Administrative Expense 0

5. Recognition of Outflow/(Inflow) of Resources due to Liabilities (1,095,359)

6. Total OPEB Expense 2,535,691$

Recognition of Deferred Outflows and Inflows of Resources

Differences between expected and actual experience and changes in assumptions are recognized in OPEB expense using a systematic and rational method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with OPEB through the OPEB plan (active employees and inactive employees) determined as of the beginning of the measurement period.

At the beginning of the current measurement period, the average of the expected remaining service lives for purposes of recognizing the applicable combined deferred outflows and inflows of resources established in the current measurement period is 11.3 years.

The School District of Lee County, Florida OPEB for FYE June 30, 2025 8

Statement of Outflows and Inflows Arising From Current Reporting Period

1. Difference between expected and actual experience of the Total OPEB Liability 0$

(gains) or losses

2. Assumption and Other Inputs Changes (gains) or losses (363,728)$

3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} 11.3

4. Outflow/(Inflow) of Resources to be recognized in the current OPEB expense for the difference between expected and actual experience of the Total OPEB Liability (1 ÷ 3) 0$

5. Outflow/(Inflow) of Resources to be recognized in the current OPEB expense for changes in assumptions and other inputs (2 ÷ 3) (32,188)$

6. Outflow/(Inflow) of Resources to be recognized in the current OPEB expense due to Liabilities (4 + 5) (32,188)$

7. Deferred Outflow/(Inflow) of Resources to be recognized in future OPEB expenses for the difference between expected and actual experience of the Total OPEB Liability (1 - 4) 0$

8. Deferred Outflow/(Inflow) of Resources to be recognized in future OPEB expenses for changes in assumptions and other inputs (2 - 5) (331,540)$

9. Deferred Outflow/(Inflow) of Resources to be recognized in future OPEB expenses due to Liabilities (7 + 8) (331,540)$

The School District of Lee County, Florida OPEB for FYE June 30, 2025 9

Statement of Outflows and Inflows Arising From Current and Prior Reporting Periods

A. Outflows Inflows Net (In)/Outflows of Resources of Resources of Resources

1. Differences between expected and actual experience 186,039$ 0$ 186,039$

2. Assumption changes 296,861 1,578,259 (1,281,398)

3. Total 482,900$ 1,578,259$ (1,095,359)$

B.

of Resources of Resources of Resources

1. Differences between expected and actual experience 917,779$ 0$ 917,779$

2. Assumption changes 2,163,171 9,784,230 (7,621,059)

3. Total 3,080,950$ 9,784,230$ (6,703,280)$

C. Year

Ending

June 30 of Resources

2026 (1,095,359)$

2027 (1,095,359)

2028 (706,083)

2029 (670,206)

2030 (659,961)

Thereafter (2,476,312)

Total (6,703,280)$

D. 1,783,133$

Deferred Outflows and Inflows of Resources by Source to be Recognized in Future OPEB

Expenses

Deferred Outflows and Inflows of Resources by Year to be Recognized in Future OPEB

Expenses

Outflows and Inflows of Resources by Source to be Recognized in Current OPEB Expense

Net Deferred

(In)/Outflows

Net Deferred

(In)/Outflows

Deferred

Inflows

Deferred

Outflows

Deferred Outflow of Resources due to Benefits Paid After the

Measurement Date

The School District of Lee County, Florida OPEB for FYE June 30, 2025 10

Statement of Remaining Deferred Outflows and Inflows of Resources

Date Original

Established Source Amount

6/30/2020 Liability Experience 10.0 1,473,558$ 5.0 736,778$ 147,356$ 589,422$

6/30/2021 Assumption Changes 11.3 2,251,057 7.3 1,454,221 199,209 1,255,012

6/30/2022 Liability Experience 11.3 177,348 8.3 130,263 15,695 114,568

6/30/2024 Assumption Changes 11.3 1,103,463 10.3 1,005,811 97,652 908,159

6/30/2024 Liability Experience 11.3 259,765 10.3 236,777 22,988 213,789

SUBTOTAL: 5,265,191 3,563,850 482,900 3,080,950

6/30/2018 Assumption Changes 10.0 (3,892,800) 3.0 (1,167,840) (389,280) (778,560)

6/30/2019 Assumption Changes 10.0 (358,774) 4.0 (143,512) (35,877) (107,635)

6/30/2020 Assumption Changes 10.0 (1,575,972) 5.0 (787,987) (157,597) (630,390)

6/30/2022 Assumption Changes 11.3 (671,490) 8.3 (493,218) (59,424) (433,794)

6/30/2023 Assumption Changes 11.3 (10,213,990) 9.3 (8,406,204) (903,893) (7,502,311)

6/30/2025 Assumption Changes 11.3 (363,728) 11.3 (363,728) (32,188) (331,540)

SUBTOTAL: (17,076,754) (11,362,489) (1,578,259) (9,784,230)

GRAND TOTAL: $ (11,811,563) $ (7,798,639) $ (1,095,359) $ (6,703,280)

Amount

Deferred to Future

Periods

Years

Remaining

Beginning of Period

Recognition

Period, in Years

Deferred Outflows of Resources

Deferred Inflows of Resources

Amount

Unrecognized

Beginning of Period

Amount

Recognized in Current

Expense

The School District of Lee County, Florida OPEB for FYE June 30, 2025 11

Discount Rate

For plans that do not have formal assets, the discount rate should equal the tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date. For the purpose of this actuarial roll-forward, the municipal bond rate is 3.93% (based on the daily rate closest to but not later than the measurement date of the Bond Buyer “20-Bond GO Index”). The discount rate was 3.86% as of the beginning of the measurement year.

Plan Assets

There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Summary of Membership Information

The following table provides a summary of the number of participants in the plan as of June 30, 2023 (the latest valuation date):

Inactive Plan Members or Beneficiaries Currently Receiving Benefits 1,707

Inactive Plan Members Entitled to But Not Yet Receiving Benefits -

Active Plan Members 10,092

Total Plan Members 11,799

The School District of Lee County, Florida OPEB for FYE June 30, 2025 12

Sensitivity of Total OPEB Liability

Regarding the sensitivity of the total OPEB liability to changes in the discount rate, the following presents the plan’s total OPEB liability, calculated using a discount rate of 3.93%, as well as what the plan’s total OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher:

Sensitivity of Total OPEB Liability to the Discount Rate Assumption

Current Discount

1% Decrease Rate Assumption 1% Increase

2.93% 3.93% 4.93%

$ 51,079,006 $ 45,481,571 $ 40,723,994

Regarding the sensitivity of the total OPEB liability to changes in the healthcare cost trend rates, the following presents the plan’s total OPEB liability, calculated using the assumed trend rates as well as what the plan’s total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one percent higher:

Sensitivity of Total OPEB Liability to the Healthcare Cost Trend Rate Assumption

Current Healthcare Cost

1% Decrease Trend Rate Assumption 1% Increase

$ 40,258,733 $ 45,481,571 $ 52,050,923