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County of Hawaii <br />Department of Water Supply <br />(A component unit of the County of Hawaii, State of Hawaii) <br />NOTES TO FINANCIAL STATEMENTS <br />June 30, 2020 and 2019 <br />NOTE G - EMPLOYEE BENEFITS (Continued) <br />For employees hired on or after July 1, 2001, and who retire with less than 10 years of service, <br />the Department makes no contributions. For those retiring with at least 10 years but fewer <br />than 15 years of service, the Department pays 50% of the base monthly contribution. For <br />those retiring with at least 15 years but fewer than 25 years of service, the Department pays <br />75% of the base monthly contribution. For those employees retiring with at least 25 years of <br />service, the Department pays 100% of the base monthly contribution. Only single plan <br />coverage is provided for retirees in this category. The Department's contribution is based on <br />the single plan base monthly contribution. Retirees can elect family coverage but must pay <br />the difference. <br />Net OPEB Liability <br />The Department's net OPEB liability as of June 30, 2020 and 2019 was measured as of <br />July 1, 2019 and 2018, respectively, and the total OPEB liability used to calculate the net <br />OPEB liability was determined by an actuarial valuation as of those dates. <br />Actuarial assumptions. The total OPEB liability in the July 1, 2019 actuarial valuation was <br />determined using the following actuarial assumptions, applied to all periods included in the <br />measurement, unless otherwise specified: <br />Inflation <br />Salary increases <br />Investment rate of return <br />Healthcare cost trend rates <br />PPO <br />HMO <br />Part B & base monthly contribution <br />Dental <br />Vision <br />Life insurance <br />2.50% <br />3.50% to 7.00% including inflation <br />7.00% <br />Initial rates of 8.00%; declining to a rate of <br />4.86% after 12 years <br />Initial rate of 8.00%%; declining to a rate of <br />4.86% after 12 years <br />Initial rates of 5.00%, declining <br />to a rate of 4.70% after 11 years <br />Initial rates of 5.00% for first two years; <br />followed by 4.00% <br />Initial rates of 0.00% for first two years, <br />followed by 2.50% <br />0.00% <br />M <br />