7-GASB 75 Acturial Report - April 2025.pdf

Parkway School District

Parkway School District

Other Post-Employment Benefits Program

GASB 75 Actuarial Valuation Report for the

Fiscal Year Beginning July 1, 2024 and Ending June 30, 2025

April 2025

TABLE OF CONTENTS

Page

ACTUARIAL CERTIFICATION 1

VALUATION SUMMARY 2

SECTION I - FINANCIAL STATEMENT

• Summary of Results 3

• Table 1 - OPEB Expense 5

SECTION II - NOTES TO FINANCIAL STATEMENT

• Net OPEB Liability Assumptions 8

• Table 6 - Changes in the Net OPEB Liability 9

• Sensitivity of the Net OPEB Liability 10

• Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB 11

SECTION III - REQUIRED SUPPLEMENTARY INFORMATION

• Table 7 - Schedule of Changes in Net OPEB Liability 12

• Table 8 - Schedule of Contributions 14

SECTION IV - PLAN DEMOGRAPHICS

• Table 9 - Plan Participant Demographics 15

• Table 10 - Active Participant Scatter 16

• Table 11 - Inactive Participant Scatter 17

APPENDIX A - PLAN PROVISIONS 18

APPENDIX B - ACTUARIAL METHODS AND ASSUMPTIONS 19

APPENDIX C - HEALTH CARE DEVELOPMENT 23

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Table 2 - Increase (Decrease) in OPEB Expense From Recognizing the Effect of

Differences Between Expected and Actual Experience

Table 3 - Deferred Outflows of Resources and Deferred Inflows of Resources From The

Differences Between Expected and Actual Experience

Table 4 - Increase (Decrease) in OPEB Expense From Recognizing the Effect of Changes in Assumptions

Table 5 - Deferred Outflows of Resources and Deferred Inflows of Resources From The

Effect of Changes in Assumptions

ACTUARIAL CERTIFICATION

• Determining the OPEB expense for the fiscal year ending June 30, 2025 under GASB 75, Respectfully submitted, SageView Consulting Group

Daniel L. Homan, EA, MAAA Dmitriy Sherman, ASA, MAAA

Principal Consulting Actuary

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

This valuation has been conducted in accordance with generally accepted actuarial principles and practices including the

Actuarial Standards of Practice (ASOPS) relating to Other Post Employment Benefit (OPEB) plans. The employee census data, provided by the Parkway School District, has been reviewed for reasonableness but no attempt has been made to audit such information. The valuation was based on the provisions of the plan as amended through the beginning of the plan year. In our opinion, the actuarial assumptions used in this valuation are reasonably related to the past experience of the plan and represent reasonable expectations of future experience under the plan.

The undersigned credentialed actuaries meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this report. We are not aware of any direct or material indirect financial interest or relationship, including investments or other services, that could create a conflict of interest or that would impair the objectivity or independence of our work.

We appreciate the opportunity to be of service to Parkway School District and are available to answer questions regarding this report or to provide further details as may be requested.

We are pleased to present this report that contains the results of valuation of the Parkway School District Other Post-

Employment Benefits Program as of January 1, 2024 rolled forward to January 1, 2025 to meet the requirements of the

Governmental Accounting Standards Board Statement No. 75 (GASB 75). This valuation is based on census data provided by Parkway School District, the plan as described in the official plan document as summarized in this report and the stated actuarial assumptions. This information is presented for the fiscal year ending June 30, 2025.

Parkway School District has retained Sageview Consulting Group to perform an actuarial valuation of the plan for the purposes of:

Provide the note disclosures and required supplementary information for the fiscal year ending

June 30, 2025 under GASB 75.

These results are for the purposes of financial reporting and may not be appropriate for funding purposes or other types of analysis. The use of this report for any other purpose other than those expressed here may not be appropriate.

VALUATION SUMMARY

A. Net OPEB Liability

June 30, 2025 June 30, 2024

1. Total OPEB Liability (TOL) $33,486,128 $31,518,966

2. Fiduciary Net Position (FNP) $0 $0

3. Net OPEB Liability (NOL) $33,486,128 $31,518,966

4. FNP as a percentage of TOL (Funded Level) 0.00% 0.00%

B. OPEB Expense / (Income)

June 30, 2025 June 30, 2024

1. OPEB Expense / (Income) $1,484,716 $761,957

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Under the new accounting standards, the OPEB Expense / (Income) for the fiscal year is determined at the end of the fiscal year to reflect any plan amendments, assumption changes and gain and losses during the fiscal year. The OPEB

Expense / (Income) for the fiscal years ending June 30, 2025 and June 30, 2024 is as follows:

Presented in this report are the results of the actuarial valuation as of January 1, 2024 rolled forward to January 1, 2025 for the Parkway School District Other Post-Employment Benefits Program.

Under GASB 75, the Net OPEB Liability is the excess, if any, of the Total OPEB Liability over the Fiduciary Net Position.

The Total OPEB Liability is determined under the Entry Age Normal actuarial cost method. The Net OPEB Liability as of June 30, 2025 and June 30, 2024 is as follows:

SECTION I - FINANCIAL STATEMENT

Summary of Results

A. Report Dates

1. Valuation Date 01/01/2024 01/01/2024

2. Reporting Date for Employer Under GASB 75 06/30/2025 06/30/2024

3. Measurement Date for Employer Under GASB 75 12/31/2024 12/31/2023

B. Participant Counts for the Plan Year Beginning January 1: 2024 2024

1. Actives 2,229 2,229

2. Retirees (including spouses) 589 589

3. Total participants: (1) + (2) 2,818 2,818

C. Disclosure Elements for the Fiscal Year Ending June 30: 2025 2024

1. Service cost $980,009 $892,604

2. Total OPEB liability (TOL) 33,486,128 31,518,966

3. Plan fiduciary net position (FNP) 0 0

4. Net OPEB liability (NOL): (2) - (3) 33,486,128 31,518,966

5. OPEB expense / (income) $1,484,716 $761,957

6. FNP as a percentage of TOL (funded status): (3) ÷ (2) 0.00% 0.00%

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025 Page 3

Summary of Results (continued)

D.

2025 2024

1. Investment rate of return N/A N/A

2. Municipal bond index interest rate at measurement date 4.15% 3.77%

3.

N/A N/A

4. Single equivalent interest rate 4.15% 3.77%

E. Key Assumptions for the Valuation Beginning on January 1: 2024 2024

1. Investment rate of return N/A N/A

2. Rate of inflation 2.50% 2.50%

3. Rate of salary inflation 0.00% 0.00%

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Fiscal year in which plan's fiduciary net position is projected to be depleted

Single Equivalent Interest Rate Determined for the Fiscal Year

Ending December 31:

Table 1 - OPEB Expense

Fiscal Year Ending

06/30/2025 06/30/2024

A. OPEB Expense / (Income)

1. Service cost $980,009 $892,604

2. Interest on the total OPEB liability 1,198,680 1,251,175

3. Current period benefit changes 0 0

4.

0 0

5.

(3,286,339) (3,286,338)

6.

2,592,366 1,904,516

7.

0 0

8. OPEB administrative expense if not included in claims costs 0 0

9. Other changes in plan fiduciary net position 0 0

10. Total OPEB expense / (income): sum of (1) through (9) $1,484,716 $761,957

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Projected earnings on plan assets (negative for credit against expense)

Recognition of Outflow (Inflow) of resources due to differences between expected and actual experience in the measurement of the total OPEB liability

Recognition of Outflow (Inflow) of resources due to differences between projected and actual earnings on plan investments

Recognition of Outflow (Inflow) of resources due to assumption change

Fiscal Year Ending

Table 2 - Increase (Decrease) in OPEB Expense From Recognizing the Effect of Differences Between Expected and Actual Experience

Differences

Between

Plan Expected & Recognition

Year Actual Period Annual Recognition Amount for Fiscal Year Ending

Ending Experience (Years) 2024 2025 2026 2027 2028

(8,692,717) 6.00 (1,448,786) (1,448,787) 0 0 0

(10,270,335) 6.00 (1,711,723) (1,711,723) (1,711,723) (1,711,720) 0

(754,974) 6.00 (125,829) (125,829) (125,829) (125,829) (125,829)

Total ($3,286,338) ($3,286,339) ($1,837,552) ($1,837,549) ($125,829)

Table 3 - Deferred Outflows of Resources and Deferred Inflows of Resources From The Differences Between Expected and Actual Experience

Balances as of

Amounts Recognized in June 30, 2025

OPEB Expense Deferred Deferred

Plan Experience Experience Through Outflows of Inflows of

Year Losses Gains June 30, 2025 Resources Resources

Ending (a) (b) (c) (a) - (c) (b) - (c)

($8,692,717) ($8,692,717) $0

($10,270,335) ($6,846,892) ($3,423,443)

($754,974) ($251,658) ($503,316)

Total Deferred Outflows and Inflows $0 ($3,926,759)

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Table 4 - Increase (Decrease) in OPEB Expense From Recognizing the Effect of Changes in Assumptions

Plan Recognition

Year Change in Period Annual Recognition Amount for Fiscal Year Ending

Ending Assumptions (Years) 2024 2025 2026 2027 2028

$10,460,554 10.21 $1,024,540 $1,024,540 $1,024,540 $1,024,540 $215,154

($2,931,113) 6.00 ($488,518) $0 $0 $0 $0

$7,835,695 6.00 $1,305,949 $1,305,950 $0 $0 $0

$3,366,119 6.00 $561,020 $561,020 $561,019 $0 $0

$3,874,711 6.00 $645,785 $645,785 $645,785 $645,786 $0

($7,696,742) 6.00 ($1,282,790) ($1,282,790) ($1,282,790) ($1,282,790) ($1,282,792)

$831,178 6.00 $138,530 $138,530 $138,530 $138,530 $138,530

$1,195,984 6.00 $199,331 $199,331 $199,331 $199,331

Total $1,904,516 $2,592,366 $1,286,415 $725,397 ($729,777)

Table 5 - Deferred Outflows of Resources and Deferred Inflows of Resources From The Effect of Changes in Assumptions

Balances as of

Increase in Decrease in Amounts Recognized in June 30, 2025

The Total The Total OPEB Expense Deferred Deferred

Plan OPEB OPEB Through Outflows of Inflows of

Year Liability Liability June 30, 2025 Resources Resources

Ending (a) (b) (c) (a) - (c) (b) - (c)

$10,460,554 $8,196,320 $2,264,234

($2,931,113) ($2,931,113) $0

$7,835,695 $7,835,695 $0

$3,366,119 $2,805,100 $561,019

$3,874,711 $2,583,140 $1,291,571

($7,696,742) ($3,848,370) ($3,848,372)

$831,178 $277,060 $554,118

$1,195,984 $199,331 $996,653

Total Deferred Outflows and Inflows $5,667,595 ($3,848,372)

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

SECTION II - NOTES TO FINANCIAL STATEMENT

Net OPEB Liability Assumptions

Inflation 2.50% per year

Salary increases Not applicable

Investment rate of return Not applicable

Actuarial Standards of Practice

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Actuarial Standards of Practice No. 35 (“ASOP 35”) requires that each demographic and other noneconomic assumption should be reasonable individually and in conjunction with one another. At each measurement date, the actuary should consider whether the selected assumptions continue to be reasonable. If the actuary determines that one or more of the previously selected assumptions are no longer reasonable, the actuary will perform an experience study to determine the best estimate for the Plan’s population.

Actuarial Standards of Practice No. 27 Revised (“ASOP 27”) requires that each economic assumption be reasonable based on the following characteristics: (a) appropriate for the purpose of the measurement; (b) reflects the actuary's professional judgement; (c) takes into account historical and current economic data that is relevant as of the measurement date; (d) reflects the actuary's estimate of future experience, observation of the estimates inherent in market data, or a combination thereof; and (e) has no significant bias. Given the uncertain nature of the items for which assumptions are selected, different actuaries will apply different professional judgement and may choose different reasonable assumptions. As a result, a range of reasonable assumptions may develop both for an individual actuary and across actuarial practice.

The most recent experience study was completed in June 2023.

The School District's net OPEB liability was measured as of December 31, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.

The total OPEB liability in the December 31, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the Pub-2010 Public Retirement Plans Teachers mortality table projected generationally with 2024 Adjusted Scale MP-2021 for PSRS participants and Pub-2010 Public Retirement Plans General mortality table projected generationally with 2024 Adjusted Scale MP-2021 for PEERS participants.

Under GASB 75, the discount rate for unfunded plans must be based on a yield or index rate for a 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Rates were taken from the Fidelity 20-year GO AA Bond index as of the measurement dates.

Actuarial Standards of Practice No. 6 (“ASOP 6”) provides guidance on measuring retiree group benefits obligations and determining retiree group benefits periodic costs or actuarially determined contributions.

Table 6 - Changes in the Net OPEB Liability

Increase (Decrease)

Total OPEB Plan Fiduciary Net OPEB

Liability Net Position Liability

(a) (b) (a) - (b)

A. Balances at the Fiscal Year Ending June 30, 2024 $31,518,966 $0 $31,518,966

B. Changes for the year

1. Service cost 980,009 980,009

2. Interest on the total OPEB liability 1,198,680 1,198,680

3. Difference between expected and actual experience 0 0

4. Changes in plan provisions 0 0

5. Employer contributions 1,407,511 (1,407,511)

6. Changes in assumptions 1,195,984 1,195,984

7. Net investment income 0 0

8. Benefit payments (1,407,511) (1,407,511) 0

9. Administrative expenses 0 0

10. Other changes 0 0 0

11.

1,967,162 0 1,967,162

C. Balances at the Fiscal Year Ending June 30, 2025: A + B(11) $33,486,128 $0 $33,486,128

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Net changes: (1) + (2) + (3) + (4) + (5) + (6) + (7) + (8) + (9) +

(10)

Sensitivity of the Net OPEB Liability

A. Impact of change in Discount Rate

Current

1% Decrease Discount 1% Increase

(3.15%) Rate (4.15%) (5.15%)

1. Total OPEB Liability $37,699,985 $33,486,128 $29,899,384

2. Plan Fiduciary Net Position $0 $0 $0

3. Net OPEB Liability: (1) - (2) $37,699,985 $33,486,128 $29,899,384

B. Impact of change in Healthcare Trend Rates

1% Decrease Current 1% Increase in Trend Rates Trend Rates in Trend Rates

1. Total OPEB Liability $29,308,793 $33,486,128 $38,502,065

2. Plan Fiduciary Net Position $0 $0 $0

3. Net OPEB Liability: (1) - (2) $29,308,793 $33,486,128 $38,502,065

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

The following presents the net OPEB liability of the School District, calculated using the discount rate of 4.15%, as well as what the School District's net OPEB liability would be if it were calculated using a discount rate that is 1% lower (3.15%) or 1% point higher (5.15%) than the current rate:

The following presents the net OPEB liability of the School District, calculated using a healthcare cost trend rates of

1% higher than the assumed healthcare cost trend rates for all years and a healthcare cost trend rates that is 1% lower than the assumed healthcare cost trend rates for all years:

Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

Deferred Deferred

Outflows of Inflows of

Resources Resources

A. Difference between expected and actual experience $0 ($3,926,759)

B. Changes in assumptions $5,667,595 ($3,848,372)

C.

$0 $0

Year ended December 31: Amounts

2026 ($551,137)

2027 ($1,112,152)

2028 ($855,606)

2029 $212,030

2030 $199,329

Thereafter $0

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Since certain OPEB expense items are amortized over closed periods each year, the deferred portions of these items must be tracked annually. If the amounts increase the OPEB expense, they are labeled as deferred outflows and amounts that decrease the OPEB expense are labeled as deferred inflows. These outflows and inflows are amortized on a level dollar basis with no interest added for the deferred amounts. Deferred experience gains/losses and changes in assumptions are amortized over the average remaining service lives of all employees that are provided with benefits through the OPEB plan at the beginning of the measurement period. Investment gains/losses are amortized over a five year period. The following shows the summary of the deferred outflows and inflows as of June 30, 2025.

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Net difference between projected and actual earnings on OPEB plan investments

SECTION III - REQUIRED SUPPLEMENTARY INFORMATION

Table 7 - Schedule of Changes in Net OPEB Liability

Fiscal Year Ending June 30:

A. Schedule of Changes in Net OPEB Liability 2025 2024 2023 2022

1. Total OPEB Liability

a. Service cost $980,009 $892,604 $1,265,913 $1,479,571

b. Interest 1,198,680 1,251,175 788,033 929,527

c. Change in benefit terms 0 0 0 0 d.

0 (754,974) 0 (10,270,335)

e. Change in assumptions 1,195,984 831,178 (7,696,742) 3,874,711

f. Benefit payments (1,407,511) (1,403,262) (1,286,267) (1,496,465) g.

1,967,162 816,721 (6,929,063) (5,482,991)

h. Total OPEB Liability - beginning 31,518,966 30,702,245 37,631,308 43,114,299

i. Total OPEB Liability - ending 33,486,128 31,518,966 30,702,245 37,631,308

2. Plan Fiduciary Net Position

a. Contributions - Employer $1,407,511 $1,403,262 $1,286,267 $1,496,465

b. Contributions - Members 0 0 0 0

c. Net investment income 0 0 0 0

d. Benefit payments (1,407,511) (1,403,262) (1,286,267) (1,496,465)

e. Administrative expenses 0 0 0 0

f. Other 0 0 0 0 g.

0 0 0 0

h. Plan Fiduciary Net Position - beginning 0 0 0 0

i. Plan Fiduciary Net Position - ending 0 0 0 0

j. Net OPEB liability: (1i) - (i) 33,486,128 31,518,966 30,702,245 37,631,308 k.

0 0 0 0

l. Covered employee payroll 160,280,319 155,686,597 152,930,417 148,914,752 m.

20.89% 20.25% 20.08% 25.27%

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Plan fiduciary net position as a percentage of the total OPEB liability: (i)

÷ (1i)

Plan net OPEB liability as a percentage of the covered employee payroll: (j) ÷ (l)

Difference between expected and actual experience

Net change in Total OPEB Liability: sum of (a) through (f)

Net change in Plan Fiduciary Net

Position: sum of (a) through (f)

Table 7 - Schedule of Changes in Net OPEB Liability (continued)

Fiscal Year Ending June 30:

A. Schedule of Changes in Net OPEB Liability 2021 2020 2019 2018

1. Total OPEB Liability

a. Service cost $1,259,292 $1,147,551 $1,242,800 $1,060,221

b. Interest 1,079,588 1,602,599 1,308,387 1,116,692

c. Change in benefit terms 0 (164,992) 0 0 d.

0 (8,692,717) 0 0

e. Change in assumptions 3,366,119 7,835,695 (2,931,113) 10,460,554

f. Benefit payments (1,464,839) (1,779,586) (1,712,669) (1,317,174) g.

4,240,160 (51,450) (2,092,595) 11,320,293

h. Total OPEB Liability - beginning 38,874,139 38,925,589 41,018,184 29,697,891

i. Total OPEB Liability - ending 43,114,299 38,874,139 38,925,589 41,018,184

2. Plan Fiduciary Net Position

a. Contributions - Employer $1,464,839 $1,779,586 $1,712,669 $1,317,174

b. Contributions - Members 0 0 0 0

c. Net investment income 0 0 0 0

d. Benefit payments (1,464,839) (1,779,586) (1,712,669) (1,317,174)

e. Administrative expenses 0 0 0 0

f. Other 0 0 0 0 g.

0 0 0 0

h. Plan Fiduciary Net Position - beginning 0 0 0 0

i. Plan Fiduciary Net Position - ending 0 0 0 0

j. Net OPEB liability: (1i) - (i) 43,114,299 38,874,139 38,925,589 41,018,184 k.

0 0 0 0

l. Covered employee payroll 148,533,882 147,020,022 144,739,089 121,793,891 m.

29.03% 26.44% 26.89% 33.68%

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Plan fiduciary net position as a percentage of the total OPEB liability: (i)

÷ (1i)

Plan net OPEB liability as a percentage of the covered employee payroll: (j) ÷ (l)

Difference between expected and actual experience

Net change in Total OPEB Liability: sum of (a) through (f)

Net change in Plan Fiduciary Net

Position: sum of (a) through (f)

Table 8 - Schedule of Contributions

Last 10 Fiscal Years

Fiscal Year Ending December 31:

2025 2024 2023 2022

A. Actuarially Determined Contribution $1,484,716 $761,957 $659,422 $2,297,364

B.

1,407,511 1,403,262 1,286,267 1,496,465

C. Contribution Deficiency (Excess): A - B 77,205 (641,305) (626,845) 800,899

D. Covered Employee Payroll $160,280,319 $155,686,597 $152,930,417 $148,914,752

E.

0.88% 0.90% 0.84% 1.00%

Fiscal Year Ending December 31:

2021 2020 2019 2018

A. Actuarially Determined Contribution $3,293,084 $2,978,342 $3,087,208 $3,201,453

B.

1,464,839 1,779,586 1,712,669 1,317,174

C. Contribution Deficiency (Excess): A - B 1,828,245 1,198,756 1,374,539 1,884,279

D. Covered Employee Payroll $148,533,882 $147,020,022 $144,739,089 $121,793,891

E.

0.99% 1.21% 1.18% 1.08%

Fiscal Year Ending December 31:

2017 2016

A. Actuarially Determined Contribution $0 $0

B.

$0 $0

C. Contribution Deficiency (Excess): A - B

D. Covered Employee Payroll N/A N/A

E.

N/A N/A

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Contribution in Relation to the Actuarially

Determined Contribution

Contributions as a Percentage of Covered

Employee Payroll: B ÷ D

Contribution in Relation to the Actuarially

Determined Contribution

Contribution in Relation to the Actuarially

Determined Contribution

Contributions as a Percentage of Covered

Employee Payroll: B ÷ D

Contributions as a Percentage of Covered

Employee Payroll: B ÷ D

SECTION IV - PLAN DEMOGRAPHICS

Table 9 - Plan Participant Demographics

January 1, 2024 January 1, 2024

A. Participant Count

1. Active participants 2,229 2,229

2. Retired participants (including spouses) 589 589

3. Total participant count: (1) + (2) 2,818 2,818

B. Participant Averages

1. Active participants

a. Average age 45.4 45.4

b. Average service 10.5 10.5

2. Retirees average age 69.3 69.3

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Plan Year Beginning:

Table 10 - Active Participant Scatter

A. Actives Attained Age/Service Scatter as of January 1, 2024

Attained Years of Service

Age 0 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40+ Total

Under 25 59 1 0 0 0 0 0 0 0 60

25 to 29 117 26 1 0 0 0 0 0 0 144

30 to 34 101 93 20 0 0 0 0 0 0 214

35 to 39 93 73 91 59 0 0 0 0 0 316

40 to 44 105 68 65 121 29 2 0 0 0 390

45 to 49 91 58 43 67 77 18 0 0 0 354

50 to 54 61 34 32 51 52 41 2 0 0 273

55 to 59 43 49 28 49 27 16 9 2 0 223

60 to 64 38 35 18 40 15 9 3 1 1 160

65 to 69 13 21 3 9 9 4 2 2 0 63

70+ 8 11 5 0 3 2 1 1 1 32

Total 729 469 306 396 212 92 17 6 2 2,229

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025 Page 16

Table 11 - Inactive Participant Scatter

A. Inactives Attained Age and Average Benefit Scatter as of January 1, 2024

Retired Participants

With Without

Attained Spouse Spouse Surviving

Age Coverage Coverage Spouses Total

Under 50 0 4 0 4

50 to 54 9 19 0 28

55 to 59 29 39 0 68

60 to 64 38 84 0 122

65 to 69 8 15 2 25

70 to 74 14 24 1 39

75 to 79 18 39 1 58

80 to 84 14 33 2 49

85 to 89 6 32 3 41

90+ 2 14 1 17

Total 138 303 10 451

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025 Page 17

APPENDIX A - PLAN PROVISIONS

A summary of the postemployment health plan eligibility, plan benefits and contribution provisions are as follows:

A. Eligibility

B. Coverage

C. Retiree Contributions

D.

UHC UHC UHC High

Coverage Type Base Premium Deductible

Employee Only $707.48 $841.42 $587.48 $261.74 $299.43

Employee + Spouse $1,246.54 $1,564.24 $990.26 $523.48 $598.86

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Employees who are eligible for Normal or Early retirement under PSRS or PEERS.

Normal retirement age is the earlier of age 60 with 5 years of service, age plus service equal to 80 points ("Rule of 80"), or any age with 30 years of service. Early retirement is age 55 with 5 years of service or any age with 25 years of service.

Retirees may cover spouses and eligible dependent children. Surviving spouses can continue coverage after retiree's death.

Medical, dental, and vision coverages are available for retirees and their dependents provided the retiree pays the entire premium. Retirees can continue coverage past Medicare eligibility age (age 65).

Retirees pay 100% of the active premium rate. The active premium rates are shown in the table below.

Monthly Medical Premiums as of

January 1, 2024

Medical Plan

Post-65

Anthem

Post-65

Aetna

APPENDIX B - ACTUARIAL METHODS AND ASSUMPTIONS

A. Actuarial Methods

1. Actuarial Cost Method

2.

3. Amortization Method

B. Actuarial Assumptions

1. Valuation date January 1, 2024

2. Measurement date December 31, 2024

3. Measurement period January 1, 2024 to December 31, 2024

4. Reporting date June 30, 2025

5.

6. Interest rate

a. Discount rate b.

c. Municipal bond rate

7. Inflation 2.50% per year

8. Salary increase Not applicable

9. Full Attribution Age

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

The actuarial cost method used to determine the actuarial accrued liability and the normal cost for financial reporting purposes is the Entry Age Actuarial Cost Method.

The accrued liability and the normal cost are used to determine the School District's financial disclosure requirement. Under this method, the cost of each individual's benefit is allocated on a level percent of payroll basis between the time employment starts (entry age) and the assumed retirement date. The normal cost is the amount allocated for a given year and actuarial liability is the accumulation of prior normal costs as of the determination date. The total actuarial liability for retirement benefits is the sum of the actuarial liability for all members.

Level dollar amortization for differences between expected and actual experience with regard to economic or demographic factors and for changes in assumptions, the amounts will be amortized over a closed period equal to the average of the expected remaining service lives of all participants (including inactives) determined at the beginning of the measurement period. The differences between projected and actual earnings on OPEB plan investments will be recognized over a closed five-year period.

An actuarial valuation is prepared biennially with a 'roll-forward' valuation in the interim year, provided no significant events have occurred during the interim year warranting a new measurement. This year's fiscal 2025 valuation was based on a roll-forward valuation.

Actuarial Valuation

Frequency

Expected long term rate of return

Collection date of census data January 1, 2024

Valuation

Fiscal 2025

4.15%

N/A

4.15%

Fiscal 2024

Valuation

3.77%

N/A

3.77%

Age at which retirement rate is 100%.

APPENDIX B - ACTUARIAL METHODS AND ASSUMPTIONS (continued)

10. Medicare Eligibility

11. Mortality table

a. PSRS

b. PEERS

12.

13. Participation

14. Plan Election

15. Spousal coverage

16.

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

It is assumed that employees will enroll in the same plan they elected as actives. If an employee has waived active medical coverage then he or she is assumed not to participate in the retiree medical plan.

It is assumed that 100% of Medicare eligible retirees will lapse coverage upon attainment of age 65.

Lapse rate

It is assumed that 20% of participants will be married and elect medical coverage for their spouse upon retirement. Husbands are assumed to be three years older than their wives.

2044 5.15%

2045+ 5.00%

It is assumed that 45% of employees will elect medical coverage upon retirement.

2040 5.75%

2041 5.60%

2042 5.45%

6.80%

2038 6.05%

2039 5.90%

2036 6.35%

2037 6.20%

Health Care and

Contribution Trend Rate 8.00%

2026 7.85%

Fiscal Year Medical Rate

Pub-2010 Public Retirement Plans General mortality table projected generationally with 2024 Adjusted Scale MP-2021

Active employees are assumed to be eligible for Medicare. 5% of retirees currently under age 65 are assumed to not be eligible for Medicare. These retirees are assumed to continue coverage under the plan after age 65. Non-Medicare eligible retirees currently over age 65 are assumed to continue coverage through the plan.

2027 7.70%

2028 7.55%

2029 7.40%

2030 7.25%

Pub-2010 Public Retirement Plans Teachers mortality table projected generationally with 2024 Adjusted Scale MP-2021

2031 7.10%

2034 6.65%

6.95%

5.30%2043

2035 6.50%

17. Rates of withdrawal

Service

25+

18. Rates of retirement

a. PSRS Members

Age <=20 22 25 26 27 29 30 31 >=32

<=50 0% 0% 5% 3% 3% 3% 30% 15% 40%

51-52 0% 0% 5% 3% 3% 15% 30% 15% 40%

53 0% 0% 5% 3% 27% 15% 30% 15% 40%

54 0% 0% 5% 28% 17% 15% 30% 15% 40%

55 5% 3% 39% 18% 17% 15% 30% 15% 40%

56-57 5% 3% 19% 18% 17% 15% 30% 15% 40%

58 5% 40% 19% 18% 17% 15% 30% 15% 40%

59 5% 20% 19% 18% 17% 15% 30% 15% 40%

60-64 20% 20% 25% 25% 25% 25% 30% 15% 40%

65 30% 30% 45% 45% 45% 45% 30% 15% 40%

66-69 25% 25% 30% 30% 30% 30% 30% 15% 40%

>=70 100% 100% 100% 100% 100% 100% 100% 100% 100%

b. PEERS Members

Age <=20 22 25 28 >=30

<50 0% 0% 5% 5% 30%

50-51 0% 0% 5% 5% 20%

52 0% 0% 5% 30% 20%

53-54 0% 0% 5% 20% 20%

55 5% 5% 30% 20% 20%

56-57 5% 5% 20% 20% 20%

58 5% 30% 20% 20% 20%

59 5% 20% 20% 20% 20%

60-61 10% 10% 10% 10% 10%

62-64 20% 20% 20% 20% 20%

65-66 30% 30% 30% 30% 30%

67-71 25% 25% 25% 25% 25%

72-74 20% 20% 20% 20% 20%

>=75 100% 100% 100% 100% 100%

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

1.0% 1.8%

0.0% 0.0%

11.5% 23.0%

10.0% 18.0%

8.0% 15.0%

7.0% 12.5%

6.0% 10.0%

The following rates for retirement are from the June 30, 2024 PSRS/PEERS of Missouri

Actuarial Valuation Report as follows:

Years of Service

The following rates for withdrawal are from the June 30, 2024 PSRS/PEERS of Missouri

Actuarial Valuation Report as follows:

PSRS Members PEERS Members

24.0% 35.0%

2.8% 5.5%

1.5% 3.3%

Years of Service

19. Rates of disability

20.

C. Changes from Prior Valuation

1. Interest rate

2. Trend rates

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

The discount rate was updated from 3.77% as of December 31, 2023 to 4.15% as of

December 31, 2024.

70 $14,334 $2,853

75 $15,299 $3,045

80 $16,344 $3,253

60 $11,230 N/A

64 $13,437 N/A

65 $13,974 $2,782

45 $6,077 N/A

50 $7,443 N/A

55 $9,166 N/A

January 1, 2024 Annual

Medical Per Capita Costs Age UHC Medicare

40 $5,388 N/A

The medical trend rate table was updated for fiscal 2025.

None

APPENDIX C - HEALTH CARE DEVELOPMENT

A. General Description

B. Plan Options

C. Type of Insurance

D. Information Provided for Study

E. Analysis of Data

F.

Parkway School District Other Post-Employment Benefits Program Rolled Forward Report as of January 1, 2024 to January 1, 2025

Average ages and average costs were calculated for the groups. The average costs that were calculated reflect the expected cost for the average plan design within the group and also reflect the average age.

Determination of Starting Per

Capita Medical Costs

Benefits provided are retiree medical, dental and vision coverage to eligible retirees and their dependents.

Retirees and their eligible dependents choose between five plan options: UHC

Base, UHC Premium, UHC High Deductible, Anthem, and Aetna. For the purposes of the valuation, age adjusted premium rates for each plan option are used as the basis for developing starting costs for retirees and their eligible spouses.

Fully-insured

Premium rates for blended active/pre-65 and post-65 populations were provided for each of the medical plans.

As represented to us, the same premium rates are charged to the active and retiree groups for the medical plan. As such, the premium rates are viewed as composite rates for the combined groups. According to GASB 75, when an employer provides benefits to both active employees and retirees through the same plan, the benefits to retirees should be segregated and measured independently for actuarial measurement purposes. The projection of future retiree benefits should be based on claims costs, or age-adjusted premiums approximating claims costs, for retirees, in accordance with actuarial standards issued by the Actuarial Standards Board. The resulting “implicit rate subsidy”, as defined in GASB 75, is the difference between the calculated claims cost and the cost upon which retiree contributions are determined (in this case, the premium rates). Retiree premiums were estimated for the retiree groups as if they were rated on a stand-alone basis. The premium rates being charged were adjusted to reflect a premium for the retiree groups only. The results were then disaggregated into age-specific starting costs based on average ages and assumptions on the relationships of costs and increasing age. Separate starting costs were developed for retirees and their eligible spouses.