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Glossary <br /> Actuarial Cost Method:Sometimes called'funding method,'a particulartechnique used by <br /> actuaries to establish the amount and incidence of the annual actuarial cost of OPEB plan benefits, <br /> or normal cost,and the related unfunded liability. <br /> Actuarially determined contribution(ADC): A target or recommended contribution to a defined <br /> benefit OPEB plan for the reporting period,determined in conformity with Actuarial Standards of <br /> Practice based on the most recent measurement available when the contribution for the reporting <br /> period was adopted. GASB has not deflned an ADC,rather this needs to be defined/developed by <br /> the employer. <br /> Collective deferred outflows of resources and deferred inflows of resources related to OPEB: <br /> Deferred outflows of resources and deferred inflows of resources related to OPEB arising from <br /> certain changes in the collective net OPEB liability or collective total OPEB liability. <br /> Defined benefit OPEB: OPEB for which the benefits that the employee will receive at or after <br /> separation from employment are de�ned by the benefit terms.The OPEB may be stated as(a)a <br /> speci�ed dollar amount; (b)an amount that is calculated based on one or more factors such as age, <br /> years of service,and compensation;or(c)a type or level of coverage such as prescription drug <br /> coverage or a percentage of health insurance premiums. (OPEB that does not have all of the terms <br /> of defined contribution OPEB is classified as defined benefrt OPEB.) <br /> Defined contribution OPEB: OPEB having terms that(a) provide an individual account for each <br /> employee;(b)de�ne the contributions that an employer or nonemployer contributing entity is <br /> required to make(or the credits that it is required to provide)to an active employee's account for <br /> periods in which that employee renders service;and(c) provide that the OPEB an employee will <br /> receive will depend only on the contributions(or credits)to the employee's account,actual earnings <br /> on investments of those contributions(or credits),and the effects of forFeitures of contributions(or <br /> credits)made for other employees,as well as OPEB plan administrative costs,that are allocated to <br /> the employee's account. <br /> Discount Rate:The single interest rate that will calculate the same Total OPEB Liability as the rates <br /> used to calculate the funded and unfunded portion of Total OPEB Liability. <br /> Fiduciary Net Position:Plan assets based on market value as of the measurement date including <br /> receivable contributions and offset by plan payables. Market values are sometimes smoothed to <br /> soften the impact of investment gains and Iosses. <br /> Healthcare Cost Trend Rate:The rate of change in per capita health claims costs over time as a <br /> result of factors such as medical inflation,utilization of healthcare services,plan design,and <br /> technological developments. <br /> Investment Return Assumption:The rate used to adjust a series of future payments to reflect the <br /> time value of money. The long-term expected rate of return should be based on the nature and mix <br /> of current and expected OPEB plan investments over a period representative of the expected length <br /> of future benefit payments.The long-term expected rate of return should be determined net of <br /> OPEB plan investment expense but without reduction for OPEB plan administrative expense. <br /> Net OPEB Liability:The difference between Total OPEB Liability and Net Fiduciary Position. <br /> City of Pequot Lakes <br /> Page 21 <br />