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Glossary <br />Actuarial Accrued Liability. The portion of the present value of prospective benefits allocated to <br />service before the valuation date in accordance with the actuarial cost method. <br />Actuarial Cost Method. Sometimes called "funding method," a particular technique used by <br />actuaries to establish the amount and incidence of the annual actuarial cost of pension plan benefits, <br />or normal cost, and the related unfunded actuarial accrued liability. Ordinarily, the annual contribution <br />to the plan comprises the normal cost and an amount for amortization of the unfunded actuarial <br />accrued liability. <br />Annual OPEB Cost. An accrual -basis measure of the periodic cost of an employer's participation in a <br />defined benefit OPEB plan. <br />Annual Required Contributions (ARC). The employer's periodic required contributions to a defined <br />benefit OPEB plan, calculated in accordance with the parameters. <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 (discount rate). The rate used to adjust a series of future <br />payments to reflect the time value of money. <br />Net OPEB Obligation. The cumulative difference since the effective date of this Statement between <br />annual OPEB cost and the employer's contributions to the plan, including the OPEB liability (asset) at <br />transition, if any, and excluding (a) short -term differences and (b) unpaid contributions that have been <br />converted to OPEB- related debt. <br />Normal Cost. (A component of the Annual Required Contribution (ARC.))The actuarial present value <br />of benefits attributed by the postretirement benefit formula to services rendered by employees during <br />that period based on assumptions as to future compensation levels. The interest rate used in <br />determining the present value is the discount rate. <br />Other Post - employment Benefits. Post - employment benefits other than pension benefits. Other <br />post - employment benefits (OPEB) include post - employment healthcare benefits, regardless of the <br />type of plan that provides them, and all post - employment benefits provided separately from a pension <br />plan, excluding benefits defined as termination offers and benefits. <br />Plan Members. The individuals covered by the terms of an OPEB plan. The plan membership <br />generally includes employees in active service, terminated employees who have accumulated <br />benefits but are not yet receiving them, and retired employees and beneficiaries currently receiving <br />benefits. <br />Post- employment Healthcare Benefits. Medical, dental, vision, and other health - related benefits <br />provided to terminated or retired employees and their dependents and beneficiaries. <br />Required Supplementary Information (RSI). Schedules, statistical data, and other information that <br />are an essential part of financial reporting and should be presented with, but are not part of, the basic <br />financial statements of a governmental entity. <br />City of Pequot Lakes <br />Page 20 <br />