BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
Note 8:
POST-RETIREMENT HEALTH COVERAGE (CONT’D)
Plan Membership and Contributing Employers

Plan membership and contributing emloyers/non-employers consisted of the following at June 30, 2020:

2020
Inactive plan members or beneficiaries currently receiving benefits 45,537
Inactive plan members entitled to but not yet receiving benefits 65
Active plan members 42,520
Total 88,122
Contributing Employers – 582
Contributing Nonemployers - 1
Nonspecial Funding Situation:

The State of New Jersey’s Total OPEB Liability for nonspecial funding situation was $12,484,309,814 at June 30, 2020.

Components of Net OPEB Liability – The components of the collective net OPEB liability for Local Government Retired Employees Plan, including the State of New Jersey, is as follows:

June 30, 2020
Total OPEB Liability $18,111,475,228
Plan Fiduciary Net Position 164,862,282
Net OPEB Liability $17,946,612,946
Plan fiduciary net position as a percentage
  of the total OPEB liability
0.91%
Actuarial Assumptions and Other Inputs:

The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, which was rolled forward to June 30, 2020. The actuarial assumptions vary for each plan member depending on the pension plan the member is enrolled in. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement:

Inflation rate 2.50%
Salary Increases*:
Public Employees’ Retirement System (PERS)
Initial fiscal year applied
Rate through 2026 2.00% to 6.00%
Rate thereafter 3.00% to 7.00%
Police and Firemen's Retirement System (PFRS)
Rate for all future years 3.25% to 15.25%
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