Ratios

CITY OF SUFFOLK, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2022

Note 13. Other Postemployment Benefits Program – VRS Plans (Continued)

Net OPEB Liability (Asset) (continued)

City and School - GLI City - LODA School – THIC

School VLDP Total OPEB liability $3,577,346,000 $448,542,000 $1,477,874,000 $10,040,000 Plan fiduciary net position 2,413,074,000 7,553,000 194,305,000 11,756,000 Net OPEB liability (asset) 1,164,272,000 $440,989,000 1,283,569,000 ($1,716,000) Fiduciary net position as a percent of total OPEB liability 67.45% 1.68% 13.15% 117.09%

The total OPEB liabilities are calculated by the System’s actuary and the plan’s fiduciary net position is reported in the System’s financial statements. The net OPEB liabilities are disclosed in accordance with the requirements of GAAP in the System’s notes to the financial statements and required supplementary information.

Actuarial Methods and Assumptions

The total GLI, THIC, NTHIC LODA and VLDP, OPEB liabilities were based on actuarial valuations as of June 30, 2020, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2021.

Investment rate of return, net of investment expenses, including inflation Health Care cost trend rate:

Under age 65

Age 65 and older Inflation Rate

City and School - GLI City - LODA School THIC, NTHIC and VLDP

6.75% 2.16% * 6.75%

n/a 7.00%-4.75% n/a n/a 5.375% - 4.75% n/a 2.50% 2.50% 2.50%

Projected salary increases:

Locality – general 3.5% - 5.35% n/a 3.5% - 5.35%

Locality – hazardous duty 3.5% - 4.75% n/a 3.5% - 4.75%

Teachers 3.5% - 5.95% n/a 3.5% - 5.95%

* LODA: Since LODA is funded on a current-disbursement basis, the assumed annual rate of return of 2.16% was used since it approximates the risk-free rate of return.