City of Oakwood, Ohio

Notes to the Required Supplementary Information

For The Year Ended December 31, 2024

Note 3 - Net OPEB Liability (Asset)

OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM CHANGES IN BENEFIT TERMS AND ASSUMPTIONS
Changes in assumptions:

2024: The following were the most significant changes of assumptions that affected the total OPEB (asset) since the prior measurement date:

  • The single discount rate increased from 5.22% to 5.70%.
  • The municipal bond rate decreased from 4.05% to 3.77%.

2023: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:

  • The single discount rate decreased from 6.00% to 5.22%.
  • The municipal bond rate increased from 1.84% to 4.05%.

2022: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:

  • The municipal bond rate decreased from 2.00% to 1.84%.
  • The initial health care cost trend rate decreased from 8.50% to 5.50%.
  • Decrease in wage inflation from 3.25% to 2.75%.
  • Change in future salary increases from a range of 3.25%-10.75% to 2.75%-10.75%.

2021: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:

  • The single discount rate increased from 3.16% to 6.00%.
  • The municipal bond rate decreased from 2.75% to 2.00%.
  • The initial health care cost trend rate decreased from 10.50% to 8.50%.

2020: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:

  • The single discount rate decreased from 3.96% to 3.16%.
  • The municipal bond rate decreased from 3.71% to 2.75%.
  • The initial health care cost trend rate increased from 10.00% to 10.50%.

2019: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:

  • The single discount rate increased from 3.85% to 3.96%.
  • The investment rate of return decreased from 6.50% to 6.00%.
  • The municipal bond rate increased from 3.31% to 3.71%.
  • The initial health care cost trend rate increased from 7.50% to 10.00%.

2018: The single discount rate changed from 4.23% to 3.85%.

Changes in Benefit Terms:

2023-2024: There were no changes in benefit terms for the period.

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