Fiscal 2015 valuation

Town of Winthrop · from the Town's website · 36 pages · 755 KB
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TOWN OF WINTHROP 
OTHER POSTEMPLOYMENT BENEFITS PROGRAM 
Associate, Society of Actuaries 
ACTUARIAL VALUATION 
Prepared by: 
Christopher E. Bean, ASA, MAAA 
July 1, 2015 
Linda L. Bournival, FSA, EA, MAAA 
Member, American Academy of Actuaries 
DBR Group, Inc. 
KMS Actuaries, LLC 
Enrolled Actuary 
Member, American Academy of Actuaries 
and 
Fellow, Society of Actuaries

Mr. Michael Perez 
Chief Financial Officer 
Town of Winthrop 
1 Metcalf Square 
Winthrop, MA 02152 
Dear Michael: 
Our best estimate health care cost trend assumptions are based on recent experience and anticipated
future cost increases under the Town of Winthrop medical plans. Section 5 illustrates the sensitivity of
actuarial accrued liability and annual required contribution to a one percentage increase and decrease
in the health care cost trend assumption for each future year. 
Our actuarial valuation is based on a discount rate of 4% compounded annually. To illustrate the
impact on cost of fully prefunding the Town's benefit liabilities, our report also includes valuation
results based on an alternative 7.5% discount rate. Section 5 illustrates the sensitivity of actuarial
accrued liability and annual required contribution to a one percentage increase and decrease in the
discount rate. 
We also provide 30-year forecasts of the OPEB liability under a partial prefunding arrangement and a
fully-funded arrangement as well as a 10-year forecast of the Annual OPEB Cost and the Net OPEB
Obligation in Section 4. 
August 4, 2017 
Enclosed is our report summarizing the results of an actuarial valuation of the Town of Winthrop's
Other Postemployment Benefits (OPEB) as of July 1, 2015. Our valuation was performed in
accordance with the provisions contained in the GASB Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). 
A summary of the valuation results is shown in Section 1. The principal results of our valuation are
summarized in Section 2. The Plan Provisions and Actuarial Assumptions and Methods are shown in
Sections 6 and 7, respectively. Section 8 summarizes the demographic profile of active employees
and retirees. 
The required disclosures under GASB 45 are presented in Section 3. The disclosures as of June 30,
2017 under the new GASB 74 standard will be presented in a separate report.

Page 2 
508-628-9022 
Our valuation follows generally accepted actuarial methods and we perform such tests as we consider
necessary to assure the accuracy of the results. The amounts presented in this report have been
appropriately determined according to the actuarial assumptions and methods stated herein. 
We are members of the American Academy of Actuaries and meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion contained herein. 
We appreciate this opportunity to be of service to the Town of Winthrop. We are available to answer
any questions with respect to our valuation. 
Mr. Michael Perez 
August 4, 2017 
Our calculations were based on participant census data and other information provided by the Town of
Winthrop and the benefit provisions of the medical plans as described in the benefit summaries. Our
valuation is also based on medical plan rates provided by the Town in the file "monthly-gic-full-cost-
ratesfy17-jan2017". 
Respectfully submitted, 
603-792-9494 
Christopher E. Bean, ASA, MAAA 
Member, American Academy of Actuaries 
Linda L. Bournival, FSA, EA, MAAA 
Member, American Academy of Actuaries

ACTUARIAL CERTIFICATION 1 
SECTION 1 - SUMMARY 2 
SECTION 2 - PRINCIPAL VALUATION RESULTS 6 
TABLE 2.1 - OPEB TRUST ASSETS 
TABLE 2.2 - ACTUARIAL ACCRUED LIABILITY 
TABLE 2.3 - NORMAL COST 
TABLE 2.4 - ANNUAL REQUIRED CONTRIBUTION AND ANNUAL OPEB COST 
SECTION 3 - GASB 45 ACCOUNTING DISCLOSURE 10 
SECTION 4 - FORECASTS 11 
TABLE 4.1 - CALCULATION OF THE ANNUAL REQUIRED CONTRIBUTION 
TABLE 4.2 - FUNDING THE ANNUAL REQUIRED CONTRIBUTION 
TABLE 4.3 - ANNUAL OPEB COST AND NET OPEB OBLIGATION 
SECTION 5 - SENSITIVITY ANALYSIS 15 
TABLE 5.1 - DISCOUNT RATE ASSUMPTION 
TABLE 5.2 - HEALTH CARE COST TREND ASSUMPTION 
SECTION 6 - SUMMARY OF PLAN PROVISIONS 17 
SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 19 
SECTION 8 - PLAN MEMBER INFORMATION 26 
TABLE 8.1 - ACTIVE EMPLOYEES BY AGE and YEARS OF SERVICE 
TABLE 8.2 - RETIRED PLAN PARTICIPANTS and SURVIVORS 
SECTION 9 - GOVERNMENTAL ACCOUNTING STANDARDS BOARD 29 
STATEMENT NO. 45 GLOSSARY OF TERMS 
SECTION 10 - RESULTS BY SUBGROUP 31 
TABLE OF CONTENTS 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Respectfully submitted, 
603-792-9494 
Christopher E. Bean, ASA, MAAA 
Member, American Academy of Actuaries 
508-628-9022 
Linda L. Bournival, FSA, EA, MAAA 
Member, American Academy of Actuaries 
This report is intended for the sole use of the Town of Winthrop and is intended to provide information
to comply with the stated purpose of the report. It may not be appropriate for other purposes. 
The undersigned credentialed actuaries are Members of the American Academy of Actuaries and
together meet the Qualification Standards of the American Academy of Actuaries necessary to render
the actuarial opinion contained herein. They are available to answer any questions with regard to this
report. 
ACTUARIAL CERTIFICATION 
This report presents the results of the Actuarial Valuation for the Town of Winthrop Postemployment
Benefits Other Than Pensions as of July 1, 2015. The report presents the accounting and financial
reporting information in accordance with Statement Number 45 of the Governmental Accounting
Standards Board (GASB 45). 
This report was completed in accordance with generally accepted actuarial standards and procedures,
and conforms to the Code of Professional Conduct of the American Academy of Actuaries. The
actuarial assumptions other than those explicitly applicable to the postemployment benefit plans are
consistent with those used by the Winthrop Contributory Retirement System and Massachusetts
Teachers Retirement System's actuaries for the Retirement System pension valuations. 
This valuation was performed using employee data and financial information provided to us by the
Town. Although we did not audit the data used in the valuation, we believe that the information is
complete and reliable. 
Future actuarial valuation results may differ significantly from the current results presented in this
report. Examples of potential sources of volatility include plan experience differing from that
anticipated by the economic or demographic assumptions, the effect of new entrants, changes in
economic or demographic assumptions, the effect of law changes and the delayed effect of smoothing
techniques. 
Page 1 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

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 
 
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SECTION 1 - SUMMARY 
ACTUARIAL VALUATION 
As of July 1, 2015, there are 444 active employees who may be eligible for benefits in the future and
370 retired employees, covered spouses and survivors who are currently receiving benefits. Coverage
is for individuals and families or individuals and spouses depending on the coverage selected. 
The Governmental Accounting Standards Board (GASB) is responsible for establishing accounting
standards for governmental entities. Calculations developed in accordance with GASB standards are
required when providing financial statements. 
GASB believes that postemployment benefits are a form of deferred compensation whose cost should
be recognized while the employee actually renders services rather than when the actual benefits are
paid, many years later. Ideally under the GASB standard the entire postemployment liability is
recognized by the time an active participant begins to receive postemployment benefits. GASB 45’s 
focus is on postemployment benefits other than pensions, such as medical, dental and life insurance
benefits. Unlike pensions where sponsors are pre-funding for benefits due in the future, the impact of
GASB 45 will be to significantly increase cash pay-as-you-go expense. 
The effective date for GASB 45 is a function of the Town's total annual revenues in the first fiscal year
ending after June 15, 1999. We understand that this is your fiscal year that ended June 30, 1999,
and that your related revenues were greater than $10 million and less than $100 million. As a result,
the Town was required to comply with GASB 45 for the fiscal year ending June 30, 2009. 
Group 1 employees hired before April 2, 2012: retire after attaining age 55 with 10 or more
years of service or any age with 20 or more years of service 
Group 1 employees hired after April 1, 2012: retire after attaining age 60 with 10 or more
years of service 
Group 4 employees hired before April 2, 2012: retire after attaining age 55 or any age with
20 or more years of service 
Group 4 employees hired after April 1, 2012: retire after attaining age 55 
BACKGROUND 
GASB 45 
The Town of Winthrop provides postemployment medical benefits to Town retirees and their covered
dependents. The Town provides benefits as follows: 
Medical coverage continues to the spouse after the death of the retiree provided the spouse makes
the required contributions. 
Page 2 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 1 - SUMMARY 
Valuation Date July 1, 2015 July 1, 2013 
Summary of Member Data 
Active Members 444 415 
Average Age 43.8 45.8 
Average Service 10.2 11.5 
Retired Members, Covered Spouses and Survivors 370 274 
Average Age 71.7 72.1 
Discount rate 4.00% 4.00% 
Actuarial Accrued Liability $72,148,595 $62,958,152 
Normal Cost $2,015,894 $1,873,039 
Assets $50,116 $0 
Unfunded Actuarial Accrued Liability $72,098,479 $62,958,152 
Annual Required Contribution $6,266,854 $5,589,589 
Expected Employer Premiums $1,812,906 $2,134,857 
SUMMARY OF PRINCIPAL RESULTS 
It is important to understand that even though the Town charges participants for coverage based on
the individual or family premium schedule presented in our report, in developing a liability for the
Town, GASB requires that these premiums be adjusted as noted above. The plan premium represents
less than 100% of the actual cost that is required to be recognized under the GASB standard. 
Prior to GASB 45, the annual cost recognized was the annual premiums or benefits paid plus
administrative expenses less any participant contributions paid towards the coverage. Under GASB
45, an annual cost for postemployment coverage is developed for any person who is currently
receiving or who is currently actively employed and may be eligible to receive benefits in the future. In
developing the GASB 45 cost for the Town of Winthrop, the payment of future benefits is determined
using the current schedule of premiums under the plans provided by the GIC modified to reflect the
population and the fact that actual healthcare expenses are higher as individuals age. These age-
adjusted costs are increased in the future under the annual healthcare cost trend rate assumptions.
The age-adjusted per capita costs utilized in this valuation are detailed in Section 7, Actuarial
Assumptions and Methods. 
A summary of the principal results for the current and prior valuations follows: 
Page 3 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 1 - SUMMARY 
 
 
 
 
the pre- and post-retirement mortality rates were updated to utilize recent mortality tables
adjusted for generational mortality improvement. 
the excise tax under the Patient Protection and Affordable Care Act (PPACA) was updated to reflect
the tax on benefits in excess of the mandated threshholds starting in 2020 (previously, 2018). 
The accumulated Net OPEB Obligation as of June 30, 2016 is $22,954,445 and the estimated Net OPEB
Obligation as of June 30, 2017 is $27,089,398. 
We have provided results based on a discount rate of 4%. As shown in Table 4.3 of Section 4, the Annual
OPEB Cost for the fiscal year ending June 30, 2016 under GASB 45 is $5,929,962 and the estimated
Annual OPEB Cost for the fiscal year ending June 30, 2017 under GASB 45 is $6,119,528. 
The most important assumption for GASB 45 is the discount rate, which is used to discount future
benefits to current age. GASB 45 requires that the discount rate accurately reflects the rate of return
on assets dedicated to paying the retiree medical benefits. This means that a traditional pay-as-you-go
system, which pays benefits from the Town's annual budget and not a dedicated trust, must use a
discount rate close to the rate of return on cash. Full pre-funding by use of a dedicated trust with a
mixture of stocks and bonds can employ a higher discount rate that accurately reflects the expected
return on trust assets dedicated to pay retiree medical benefits. For the Town of Winthrop, we
selected a 4% discount rate to reflect the partial pre-funding of future payments. 
CHANGES 
Some assumptions and plan provisions used in this valuation have changed from those used in the
July 1, 2013 valuation and are detailed in Sections 7 and 6, respectively. The major assumption and
plan changes are summarized below: 
the pre-retirement decrements for Teachers were updated to reflect those recently used by the
Massachusetts Teachers Retirement System actuaries. 
Actuarial Standards of Practice (ASOPs) now require that the payment of future benefits be
determined using the current schedule of premiums under the plans provided by the District,
modified to reflect the fact that actual healthcare expenses are higher as individuals age. In the
previous valuation, the GIC plans were considered to be "community rated" and therefore did not
value an "implicit subsidy" nor adjust the schedule of premiums as described above. 
RESULTS 
ACTUARIAL ASSUMPTIONS 
Page 4 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 1 - SUMMARY 
Actives: $37,382,986 
Retirees, Beneficiaries and Surviving Spouses: 34,765,609 
Total: $72,148,595 
Actuarial Value of Assets: $50,116 
Unfunded Actuarial Accrued Liability: $72,098,479 
$62,958,152 
67,488,216 
* projected from the July 1, 2013 valuation 
72,098,479 
$4,610,263 
 (50,116) 
 (2,604,478) 
 (14,897,066) 
 12,483,797 
 1,815,125 
 9,351,864 
 (1,488,863) 
 4,610,263 Total (Gain)/Loss 
gain as a result of PPACA excise tax effective 2020 (previously, 2018)
and update to tax calculation methodology 
loss as a result of update to the post-retirement mortality tables 
gain as a result of favorable demographic experience from the prior
valuation 
gain as a result of premium rates lower than expected from the
previous valuation 
loss as a result of update to pre-retirement decrements for Teachers 
loss as a result of use of age-adjusted medical costs and valuation of
implicit subsidy 
The Actuarial Accrued Liability (AAL) as of July 1, 2015 is $72,148,595. The AAL by status breakdown
is shown below: 
(Gain)/Loss during the two-year period 
The actuarial loss of $4,610,263 was mostly comprised of the following: 
ACTUARIAL GAIN/LOSS ANALYSIS 
In performing the actuarial valuation, various assumptions are made regarding future premium rates,
mortality, retirement, disability and withdrawal rates as well as investment returns. A comparison of
the results of the current valuation and the prior valuation is made to determine how closely actual
experience relates to expected. Below is the development of the Actuarial (Gain)/Loss for the current 
Actual Unfunded Actuarial Accrued Liability, July 1, 2015 
Expected Unfunded Actuarial Accrued Liability, July 1, 2015* 
Unfunded Actuarial Accrued Liability, July 1, 2013 
gain as a result of market value of assets as of the valuation date
greater than expected 
Page 5 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Market Value of Assets 
Fiscal Year 2015 2014 
Assets, prior July 1 $0 $0 
Contributions Receivable $0 $0 
Assets, prior July 1 $0 $0 
Employer Contributions 
Paid Premiums $1,622,700 $2,082,000 
OPEB Trust Deposits 50,000 0 
Total Employer Contributions $1,672,700 $2,082,000 
Benefits Paid (1,622,700) ($2,082,000) 
Expenses 0 0 
Investment Earnings 116 0 
Assets, June 30 $50,116 $0 
Estimate Rate of Return 0.46% 0.00% 
Information regarding the asset value held in the OPEB Trust was provided by the Town of
Winthrop. 
SECTION 2 - PRINCIPAL VALUATION RESULTS 
The Actuarial Value of Plan Assets is equal to the market value. The asset activity during the 2-year
period July 1, 2013 through June 30, 2015 follows: 
TABLE 2.1 - OPEB TRUST ASSETS 
Section 20 of M.G.L. Chapter 32B allows municipal entities to establish an OPEB trust for purposes of
accumulating assets to prefund the OPEB liabilities. We understand that the Town of Winthrop has
established an irrevocable trust for this purpose. Plan assets segregated and restricted in an OPEB
trust must be dedicated to providing plan benefits to retirees and beneficiaries in accordance with the
terms of the plan and must be legally protected from creditors of the employer. Further, employer
contributions to the trust must be irrevocable. 
Page 6 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 2 - PRINCIPAL VALUATION RESULTS 
Partial Pre-Funding Full Pre-Funding 
Discount Rate 4% 7.5% 
Current Active Employees 
Pre-Medicare Gross Benefit $12,427,342 $7,881,776 
Pre-Medicare Participant Contributions 1,412,127 907,429 
Net Pre-Medicare Benefit $11,015,215 $6,974,347 
Post - Medicare Gross Benefit $30,188,055 $11,979,283 
Post - Medicare Participant Contributions 3,820,284 1,621,319 
Net Post - Medicare Benefit $26,367,771 $10,357,964 
Total Current Active Employees $37,382,986 $17,332,311 
Current Retirees 
Pre-Medicare Gross Benefit $4,108,655 $3,532,315 
Pre-Medicare Participant Contributions 488,291 420,861 
Net Pre-Medicare Benefit $3,620,364 $3,111,454 
Post - Medicare Gross Benefit $35,207,573 $22,697,318 
Post - Medicare Participant Contributions 4,062,328 2,703,385 
Net Post - Medicare Benefit $31,145,245 $19,993,933 
Total Current Retirees $34,765,609 $23,105,387 
Total Actuarial Accrued Liability (AAL) $72,148,595 $40,437,698 
The Actuarial Accrued Liability is the portion of the Actuarial Present Value of Future Benefits which is
allocated to all periods prior to a valuation year and therefore is not provided for by future Normal
Costs. Below is the Actuarial Accrued Liability assuming a discount rate of 4%, a blended rate for
partial prefunding, and 7.5%, the rate of return on a dedicated trust if the Town were to fully pre-fund
benefits: 
TABLE 2.2 - ACTUARIAL ACCRUED LIABILITY 
Page 7 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 2 - PRINCIPAL VALUATION RESULTS 
Partial Pre-Funding Full Pre-Funding 
Discount Rate 4% 7.5% 
Current Active Employees 
Pre-Medicare Gross Benefit $631,083 $311,962 
Pre-Medicare Participant Contributions 68,215 34,214 
Net Pre-Medicare Benefit $562,868 $277,748 
Post - Medicare Gross Benefit $1,657,318 $483,061 
Post - Medicare Participant Contributions 204,292 64,244 
Net Post - Medicare Benefit $1,453,026 $418,817 
Total Current Active Employees $2,015,894 $696,565 
Current Retirees 
Pre-Medicare Gross Benefit $0 $0 
Pre-Medicare Participant Contributions 0 0 
Net Pre-Medicare Benefit $0 $0 
Post - Medicare Gross Benefit $0 $0 
Post - Medicare Participant Contributions 0 0 
Net Post - Medicare Benefit $0 $0 
Total Current Retirees $0 $0 
Total Normal Cost (NC) $2,015,894 $696,565 
TABLE 2.3 - NORMAL COST 
The Normal Cost is the portion of the Actuarial Present Value of Future Benefits which is attributed to
services rendered by active employees in the current year. Below is the Normal Cost assuming a
discount rate of 4%, a blended rate for partial prefunding, and 7.5%, the rate of return on a dedicated
trust if the Town were to fully pre-fund benefits: 
Page 8 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 2 - PRINCIPAL VALUATION RESULTS 
Partial Pre-Funding Full Pre-Funding 
4% 7.5% 
1. Normal Cost $2,015,894 $696,565 
2. Unfunded Actuarial Accrued Liability 
a. Actuarial Accrued Liability $72,148,595 $40,437,698 
b. Actuarial Value of Plan Assets $50,116 $50,116 
c. Unfunded Actuarial Accrued Liability $72,098,479 $40,387,582 
3. Amortization of Unfunded Actuarial 
Accrued Liability 
a. Unfunded Actuarial Accrued Liability $72,098,479 $40,387,582 
b. Amortization Period in years 30 30 
c. Factor Increasing Rate 0.0% 0.0% 
d. Amortization Factor 17.98 12.70 
e. Amortization Amount (3.a. / 3.d.) $4,009,927 $3,180,125 
4. $241,033 $290,752 
5. Annual Required Contribution (1. + 3.e. + 4.) $6,266,854 $4,167,442 
6. Net OPEB Obligation, beginning of year $18,887,389 Not Applicable 
7. Interest on Net OPEB Obligation at 4% $755,496 Not Applicable 
8. Adjustment to Annual Required Contribution at 4% ($1,092,388) Not Applicable 
9. Annual OPEB Cost (5. + 7. + 8.) $5,929,962 Not Applicable 
Interest on 1. and 3.e. 
Discount Rate 
TABLE 2.4 - ANNUAL REQUIRED CONTRIBUTION and ANNUAL OPEB COST 
Under GASB 45, the Annual Required Contribution (ARC) of the employer equals the Normal Cost plus
a provision for amortizing the Unfunded Actuarial Accrued Liability. We have assumed level dollar
amortization over the maximum acceptable amortization period of 30 years. For the period beginning
July 1, 2015, the ARC, calculated under the parameters of this actuarial valuation, would be: 
Page 9 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

7/1/2016 7/1/2015 7/1/2014 
Fiscal Year Ending 6/30/2013 6/30/2016 6/30/2015 6/30/2014 
Discount rate 4.0% 4.00% 4.00% 4.00% 
Annual Required Contribution ######### $6,266,854 $5,799,917 $5,589,589 
Interest on Net OPEB Obligation 755,496 755,496 628,646 499,364 
Adjustment to annual required contribution (1,092,388) (1,092,388) (908,974) (722,041) 
Annual OPEB cost ######### $5,929,962 $5,519,589 $5,366,912 
Expected employer premiums (including implicit subsidy) ($1,812,906) ($2,348,352) ($2,134,857) 
OPEB Trust contributions (50,000) - - 
Total Employer contributions 1,862,906 (1,862,906) (2,348,352) (2,134,857) 
Change in Net OPEB Obligation ######### $4,067,056 $3,171,237 $3,232,055 
Net OPEB Obligation - beginning of year ######### $18,887,389 $15,716,152 $12,484,097 
Net OPEB Obligation - end of year ######### $22,954,445 $18,887,389 $15,716,152 
* Entries for fiscal years 2014 and 2015 from Town's audited financial statements. 
Fiscal Year
Ended 
Annual OPEB
Cost 
Percentage
of Annual
OPEB Cost
Contributed 
Net OPEB
Obligation 
6/30/2016 5,929,962 31.4% 22,954,445 
6/30/2015 5,519,589 42.5% 18,887,389 
6/30/2014 5,366,912 39.8% 15,716,152 
Actuarial
Valuation
Date 
Actuarial
Value of
Assets
(a) 
Actuarial
Accrued
Liability
(b) 
Unfunded
AAL (UAAL)
(b-a) 
Funded
Ratio
(a/b) 
Covered
Payroll
(c) 
UAAL as a
Percentage
of Covered
Payroll
((b-a) / c) 
7/1/2015 50,116 72,148,595 72,098,479 0.07% Not available Not available 
7/1/2013 0 62,958,152 62,958,152 0.00% 19,953,536 315.5% 
7/1/2010 0 50,004,256 50,004,256 0.00% Not available Not available 
SECTION 3 - GASB 45 ACCOUNTING DISCLOSURE 
GASB 45 requires disclosure of the annual OPEB cost, the Net OPEB Obligation and the Schedule of Funding
Progress. In addition, information about the Actuarial Methods and Assumptions used in the valuation and a
summary of the Substantive Plan Provisions are disclosed, which are provided in Section 7 and Section 6,
respectively. 
Schedule of Funding Progress 
Plan History 
Annual OPEB Cost and Net OPEB Obligation* 
Page 10 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

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Assets are assumed to grow annually at the selected discount rate plus OPEB Trust Contributions
made at the end of each fiscal year. 
Actuarial Accrued Liability (AAL) equals AAL, prior year, plus Normal Cost less Expected Employer
Premiums plus interest on these items. 
Amortization Amount is the amount necessary to amortize the Unfunded Actuarial Accrued Liability
over 30 years at a discount rate of 7.5% on a closed amortization basis. The closed amortization
period is 30 years at year one declining to zero after 30 years. This method fully funds the UAAL at
the end of 30 years. 
OPEB Trust Contributions are the excess of the ARC over the Expected Employer Premiums. 
Table 4.2 is based on fully funding the Annual Required Contribution (ARC) each year. 
The assumed discount rate is 7.5%. 
Amortization Amount is the amount necessary to amortize the Unfunded Actuarial Accrued Liability
over 30 years at a discount rate of 4% on an open amortization basis. The open amortization
period is 30 years and recomputed at each valuation date. 
Unfunded Actuarial Accrued Liability (UAAL) equals the AAL less Assets. 
The Annual Required Contribution (ARC) is the sum of the Normal Cost and the Amortization
Amount, plus interest on these items. 
The assumed discount rate is 4%. 
Table 4.1 is based on funding the expected Employer premiums plus a $50,000 annual contribution
to the OPEB Trust. 
SECTION 4 - FORECASTS 
OVERVIEW 
In Section 4, we have provided 30-year forecasts of the annual funding requirements, accrued
liability, assets and unfunded actuarial accrued liability under a partial pre-funding scenario and a
fully-funded scenario. The entries in Tables 4.1 and 4.2 are based on the assumptions stated below: 
Expected Employer Premiums are developed in the actuarial valuation and are based on the plan
provisions and assumptions detailed in Section 6 and Section 7, respectively. 
Normal Cost with interest is assumed to increase annually by 4%. 
Page 11 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

FYE June
30 
(1)
Normal Cost 
(2)
Actuarial Accrued
Liability 
(3)
Expected
Employer
Premiums 
(4)
Actuarial Value of
Assets 
(5)
Unfunded Actuarial
Accrued Liability
(2) - (4) 
(6)
Amortization
Amount 
(7)
Interest 
(8)
ARC
(1) + (6) + (7) 
(9)
OPEB Trust
Contributions 
2016 2,015,894 72,148,595 1,812,906 50,116 72,098,479 4,009,927 241,033 6,266,854 50,000 
2017 2,096,530 75,282,260 1,934,575 102,121 75,180,139 4,181,320 251,114 6,528,964 50,000 
2018 2,180,391 78,501,054 2,038,160 156,206 78,344,848 4,357,333 261,509 6,799,233 50,000 
2019 2,267,607 81,830,179 2,187,514 212,454 81,617,725 4,539,362 272,279 7,079,248 50,000 
2020 2,358,311 85,230,862 2,400,399 270,952 84,959,910 4,725,245 283,342 7,366,898 50,000 
2021 2,452,643 88,644,804 2,523,708 331,790 88,313,014 4,911,736 294,575 7,658,954 50,000 
2022 2,550,749 92,167,658 2,665,536 395,062 91,772,596 5,104,149 306,196 7,961,094 50,000 
2023 2,652,779 95,788,819 2,834,762 460,864 95,327,955 5,301,888 318,187 8,272,854 50,000 
2024 2,758,890 99,488,361 2,994,125 529,299 98,959,062 5,503,841 330,509 8,593,240 50,000 
2025 2,869,246 103,283,721 3,108,841 600,471 102,683,250 5,710,971 343,209 8,923,426 50,000 
2026 2,984,016 107,228,677 3,268,522 674,490 106,554,187 5,926,262 356,411 9,266,689 50,000 
2027 3,103,377 111,287,949 3,416,220 751,470 110,536,479 6,147,746 370,045 9,621,168 50,000 
2028 3,227,512 115,483,105 3,587,325 831,529 114,651,576 6,376,617 384,165 9,988,294 50,000 
2029 3,356,612 119,800,674 3,700,802 914,790 118,885,884 6,612,118 398,749 10,367,479 50,000 
2030 3,490,876 124,309,485 3,860,716 1,001,382 123,308,103 6,858,070 413,958 10,762,904 50,000 
2031 3,630,511 128,975,202 3,997,258 1,091,437 127,883,765 7,112,556 429,723 11,172,790 50,000 
2032 3,775,731 133,833,522 4,160,860 1,185,094 132,648,428 7,377,554 446,131 11,599,416 50,000 
2033 3,926,760 138,870,362 4,308,944 1,282,498 137,587,864 7,652,273 463,161 12,042,194 50,000 
2034 4,083,830 144,114,729 4,404,255 1,383,798 142,730,931 7,938,317 480,886 12,503,033 50,000 
2035 4,247,183 149,635,025 4,526,889 1,489,150 148,145,875 8,239,481 499,467 12,986,131 50,000 
2036 4,417,070 155,420,957 4,617,182 1,598,716 153,822,241 8,555,186 518,890 13,491,146 50,000 
2037 4,593,753 161,522,928 4,728,168 1,712,665 159,810,263 8,888,224 539,279 14,021,256 50,000 
2038 4,777,503 167,939,544 4,898,577 1,831,172 166,108,372 9,238,508 560,640 14,576,651 50,000 
2039 4,968,603 174,630,141 5,080,246 1,954,419 172,675,722 9,603,767 582,895 15,155,265 50,000 
2040 5,167,347 181,601,839 5,195,305 2,082,596 179,519,243 9,984,385 606,069 15,757,801 50,000 
2041 5,374,041 188,941,761 5,368,237 2,215,900 186,725,861 10,385,198 630,370 16,389,609 50,000 
2042 5,589,003 196,613,885 5,565,678 2,354,536 194,259,349 10,804,191 655,728 17,048,922 50,000 
2043 5,812,563 204,615,103 5,610,988 2,498,717 202,116,386 11,241,178 682,150 17,735,891 50,000 
2044 6,045,066 213,122,665 5,663,970 2,648,666 210,473,999 11,706,007 710,043 18,461,116 50,000 
2045 6,286,869 222,158,302 5,672,371 2,804,613 219,353,689 12,199,871 739,470 19,226,210 50,000 
2046 6,538,344 231,798,272 5,704,139 2,966,798 228,831,474 12,727,001 770,614 20,035,959 - 
30 years open, 4% discount rate. 
SECTION 4 - FORECASTS 
TABLE 4.1 - Calculation of the Annual Required Contribution 
Page 12 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

FYE June
30 
(1)
Normal Cost 
(2)
Actuarial Accrued
Liability 
(3)
Expected
Employer
Premiums 
(4)
Actuarial Value of
Assets 
(5)
Unfunded Actuarial
Accrued Liability
(2) - (4) 
(6)
Amortization
Amount 
(7)
Interest 
(8)
ARC
(1) + (6) + (7) 
(9)
OPEB Trust
Contributions 
2016 696,565 40,437,698 1,812,906 50,116 40,387,582 3,180,125 290,752 4,167,442 50,000 
2017 724,428 42,339,672 1,934,575 37,120 42,302,552 3,365,358 306,734 4,396,520 2,461,945 
2018 753,405 44,288,097 2,038,160 2,430,614 41,857,483 3,364,749 308,862 4,427,016 2,388,856 
2019 783,541 46,306,405 2,187,514 4,926,717 41,379,688 3,364,202 311,081 4,458,824 2,271,310 
2020 814,883 48,353,629 2,400,399 7,486,982 40,866,647 3,363,510 313,379 4,491,772 2,091,373 
2021 847,478 50,367,364 2,523,708 10,051,491 40,315,873 3,365,265 315,956 4,528,699 2,004,991 
2022 881,377 52,439,319 2,665,536 12,717,416 39,721,903 3,363,413 318,359 4,563,149 1,897,613 
2023 916,632 54,556,062 2,834,762 15,470,685 39,085,377 3,363,630 321,020 4,601,282 1,766,520 
2024 953,297 56,694,002 2,994,125 18,293,125 38,400,877 3,365,546 323,913 4,642,756 1,648,631 
2025 991,429 58,866,472 3,108,841 21,203,491 37,662,981 3,365,771 326,790 4,683,990 1,575,149 
2026 1,031,086 61,123,929 3,268,522 24,254,428 36,869,501 3,364,006 329,632 4,724,724 1,456,202 
2027 1,072,329 63,427,765 3,416,220 27,409,358 36,018,407 3,363,063 332,654 4,768,046 1,351,826 
2028 1,115,222 65,795,589 3,587,325 30,691,094 35,104,495 3,365,723 336,071 4,817,016 1,229,691 
2029 1,159,831 68,209,704 3,700,802 34,090,524 34,119,180 3,364,811 339,348 4,863,990 1,163,188 
2030 1,206,224 70,735,177 3,860,716 37,674,230 33,060,947 3,363,270 342,712 4,912,206 1,051,490 
2031 1,254,473 73,334,131 3,997,258 41,409,128 31,925,003 3,364,068 346,391 4,964,932 967,674 
2032 1,304,652 76,038,304 4,160,860 45,335,299 30,703,005 3,362,870 350,064 5,017,586 856,726 
2033 1,356,838 78,829,606 4,308,944 49,438,961 29,390,645 3,362,774 353,971 5,073,583 764,639 
2034 1,411,112 81,732,819 4,404,255 53,752,858 27,979,961 3,362,976 358,057 5,132,145 727,890 
2035 1,467,556 84,813,297 4,526,889 58,350,039 26,463,258 3,366,827 362,579 5,196,962 670,073 
2036 1,526,258 88,058,339 4,617,182 63,229,676 24,828,663 3,364,317 366,793 5,257,368 640,186 
2037 1,587,308 91,516,246 4,728,168 68,442,074 23,074,172 3,363,582 371,317 5,322,207 594,039 
2038 1,650,800 95,184,052 4,898,577 73,995,168 21,188,884 3,363,315 376,059 5,390,174 491,597 
2039 1,716,832 99,018,513 5,080,246 79,856,027 19,162,486 3,367,748 381,344 5,465,924 385,678 
2040 1,785,505 103,023,185 5,195,305 86,043,842 16,979,343 3,362,246 386,081 5,533,832 338,527 
2041 1,856,925 107,282,735 5,368,237 92,644,355 14,638,380 3,365,145 391,655 5,613,725 245,488 
2042 1,931,202 111,759,228 5,565,678 99,640,500 12,118,728 3,366,313 397,314 5,694,829 129,151 
2043 2,008,450 116,446,594 5,610,988 107,037,749 9,408,845 3,360,302 402,656 5,771,408 160,420 
2044 2,088,788 121,521,576 5,663,970 115,019,392 6,502,184 3,369,007 409,335 5,867,130 203,160 
2045 2,172,340 127,008,612 5,672,371 123,640,447 3,368,165 3,368,165 415,538 5,956,043 283,672 
2046 2,259,234 132,988,283 5,704,139 132,988,283 - - 169,443 2,428,677 - 
30 years closed, 7.5% discount rate. 
SECTION 4 - FORECASTS 
TABLE 4.2 - Funding the Annual Required Contribution - 7.5% 
Page 13 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

FYE June
30 ARC 
Interest on
Net OPEB
Obligation 
ARC
Adjustment 
Amortization
Factor 
Annual
OPEB Cost 
Employer
Contributions 
Change in Net
OPEB
Obligation 
Net OPEB
Obligation
Balance 
18,887,389 
2016 6,266,854 755,496 (1,092,388) 17.29 5,929,962 1,862,906 4,067,056 22,954,445 
2017 6,528,964 918,178 (1,327,614) 17.29 6,119,528 1,984,575 4,134,953 27,089,398 
2018 6,799,233 1,083,576 (1,566,767) 17.29 6,316,042 2,088,160 4,227,882 31,317,280 
2019 7,079,248 1,252,691 (1,811,294) 17.29 6,520,645 2,237,514 4,283,131 35,600,411 
2020 7,366,898 1,424,016 (2,059,017) 17.29 6,731,897 2,450,399 4,281,498 39,881,909 
2021 7,658,954 1,595,276 (2,306,646) 17.29 6,947,584 2,573,708 4,373,876 44,255,785 
2022 7,961,094 1,770,231 (2,559,617) 17.29 7,171,708 2,715,536 4,456,172 48,711,957 
2023 8,272,854 1,948,478 (2,817,349) 17.29 7,403,983 2,884,762 4,519,221 53,231,178 
2024 8,593,240 2,129,247 (3,078,726) 17.29 7,643,761 3,044,125 4,599,636 57,830,814 
2025 8,923,426 2,313,233 (3,344,755) 17.29 7,891,904 3,158,841 4,733,063 62,563,877 
Notes: 
1. ARC and Employer Contributions are from 30-Year Forecast of Annual Required Contributions (Table 4.1). 
2. 
3. ARC Adjustment is the prior year Net OPEB Obligation Balance amortized over 30 years. 
4. OPEB Cost is the ARC plus Interest on Net OPEB Obligation less ARC Adjustment. 
5. Change in Net OPEB Obligation is the difference between the OPEB Cost and Employer Contributions. 
6. Net OPEB Obligation is the prior year Net OPEB Obligation Balance plus Change in Net OPEB Obligation. 
7. Year one Interest on Net OPEB Obligation and ARC Adjustment computed at prior discount rate of 4.00%. 
8. Subsequent years' Interest on Net OPEB Obligation and ARC Adjustment computed at current discount rate of 4.00%. 
Interest on Net OPEB Obligation is computed on the prior year Net OPEB Obligation Balance. 
TABLE 4.3 - ANNUAL OPEB COST and NET OPEB OBLIGATION 
SECTION 4 - FORECASTS 
Page 14 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Discount
Rate -1% 
Assumed
Discount Rate 
Discount
Rate +1% 
Discount Rate 3% 4% 5% 
Actuarial Accrued Liability 
Current Active Employees $48,803,159 $37,382,986 $29,288,140 
Current Retirees 39,918,450 34,765,609 30,590,778 
Total Actuarial Accrued Liability $88,721,609 $72,148,595 $59,878,918 
Change % 22.97% -17.01% 
Annual Required Contribution 
Normal Cost $2,879,948 $2,015,894 $1,446,847 
Actuarial Accrued Liability $88,721,609 $72,148,595 $59,878,918 
Actuarial Value of Assets 50,116 50,116 50,116 
Unfunded Actuarial Accrued Liability $88,671,493 $72,098,479 $59,828,802 
Amortization Payment 4,391,852 4,009,927 3,706,865 
Interest 218,154 241,033 257,686 
Annual Required Contribution $7,489,954 $6,266,854 $5,411,398 
Change % 19.52% -13.65% 
SECTION 5 - SENSITIVITY ANALYSIS 
Below we illustrate the sensitivity of the Actuarial Accrued Liability and the Annual Required
Contribution to a one percentage increase and decrease in the discount rate: 
TABLE 5.1 - DISCOUNT RATE ASSUMPTION 
Page 15 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 5 - SENSITIVITY ANALYSIS 
Trend -1% 
Assumed
Trend Trend +1% 
Discount Rate 4% 4% 4% 
Actuarial Accrued Liability 
Current Active Employees $29,482,439 $37,382,986 $48,224,427 
Current Retirees 30,765,569 34,765,609 39,585,234 
Total Actuarial Accrued Liability $60,248,008 $72,148,595 $87,809,661 
Change % -16.49% 21.71% 
Annual Required Contribution 
Normal Cost $1,457,294 $2,015,894 $2,839,173 
Actuarial Accrued Liability $60,248,008 $72,148,595 $87,809,661 
Actuarial Value of Assets 50,116 50,116 50,116 
Unfunded Actuarial Accrued Liability $60,197,892 $72,098,479 $87,759,545 
Amortization Payment 3,348,047 4,009,927 4,880,954 
Interest 192,214 241,033 308,805 
Annual Required Contribution $4,997,555 $6,266,854 $8,028,932 
Change % -20.25% 28.12% 
Below we illustrate the sensitivity of the Actuarial Accrued Liability and the Annual Required
Contribution to a one percentage increase and decrease in health care cost trend assumption for
each future year: 
TABLE 5.2 - HEALTH CARE COST TREND ASSUMPTION 
Page 16 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Eligibility: 
Ordinary Disability Eligibility: 
Accidental Disability
Eligibility: 
Medical Premium Rates: 
Individual Family 
$519.74 $1,247.40 
$690.66 $1,657.54 
$816.43 $1,992.07 
$610.40 $1,489.38 
$534.87 $1,326.04 
$512.21 $1,357.32 
$686.34 $1,674.68 
$515.32 $1,240.52 
$1,002.41 $2,346.44 
$959.09 $2,245.96 
$487.63 $1,170.35 
$655.32 $1,566.13 
$311.54 
$439.17 
$410.96 
$398.39 
$276.46 
$374.63 
$363.94 
Group 4 employees hired before April 2, 2012: retire after attaining age
55 or any age with 20 or more years of service 
SECTION 6 - SUMMARY OF PLAN PROVISIONS 
Group 1 employees hired before April 2, 2012: retire after attaining age
55 with 10 or more years of service or any age with 20 or more years of 
Non-Medicare Plans - July 1, 2016 
Fallon Direct Care 
Group 1 employees hired after April 1, 2012: retire after attaining age
60 with 10 or more years of service 
Group 4 employees hired after April 1, 2012: retire after attaining age 
The total monthly cost by plan are shown below: 
Any member who is unable to perform his or her duties due to a non-
occupational disability and has ten or more years of creditable service. 
Any member who is unable to perform his or her duties due to a job-
related disability. 
Fallon Select Care 
HP Independence Plan 
HP Primary Choice 
Health New England 
NHP Care (Neighborhood Health Plan) 
Tufts Health Plan Navigator 
Tufts Health Plan Spirit 
UniCare Basic with CIC* 
UniCare Basic without CIC 
UniCare Community Choice 
UniCare PLUS 
Medicare Plans - July 1, 2016 
Tufts Medicare Preferred** 
* Retiree pays full cost of CIC 
Health NE MedPlus 
HP Medicare Enhanced 
Tufts Medicare Complement 
Fallon Senior** 
UniCare OME w/CIC 
UniCare OME w/o CIC 
** rates effective January 1, 2016 
Page 17 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 6 - SUMMARY OF PLAN PROVISIONS 
Participant Contributions: 
Continuation of Coverage to
Spouse After Death of 
Life Insurance Benefit: 
Life Insurance Premium: 
Life Insurance Contributions: 
PPACA Excise Tax: 
Retired employees contribute $1.61 per month for life insurance. 
Retirees are eligible for a $2,000 life insurance benefit. 
The total monthly cost is $3.22. 
Surviving spouse may continue coverage for lifetime by paying the
required medical premium rates. 
Retired employees contribute between 10% and 35% of the total medical
premium rates, as follows: 
Teachers who retired before July 1, 2008 contribute 10%. 
Retirees, and Teachers who retired on or after July 1, 2008, enrolled in
UniCare State Indemnity plans contribute 35%. 
All others contribute 15%. 
The Patient Protection and Affordable Care Act (PPACA) applies a 40%
excise tax to the cost of plan benefits in excess of statutory thresholds
beginning in 2020 (previously, 2018). The 2018 thresholds are
assumed to be $10,200 for individual and $27,500 for family coverage
and increase by CPI in future years. The annual limits are increased by
$1,650 for individual and $3,450 for family coverage for retirees not
eligible for Medicare benefits. 
Page 18 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Valuation Date: 
Discount Rate: 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
Amortization Method: 
Health Care Cost Trend Rates: 
Trend 
8.00% 
7.50% 
7.00% 
6.50% 
6.00% 
5.50% 
5.00% 
5.00% 
Based on the methodology above, the Town has selected a discount
rate of 4%. 
Multiplied by long-term rate 0.16% 
Percent of GAP not funded 98% 
Multiplied by short-term rate 3.92% 
OPEB Trust contribution 50,000 
Percent of GAP funded 2% 
Discount rate (6. + 8.) 4.07% 
Year 
2 
1 
Ultimate 
SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
July 1, 2015 
Level dollar amount over thirty (30) years on an open amortization
period for partial pre-funding. 
Level dollar amount over thirty (30) years on a closed amortization
period for full pre-funding. 
4% per annum, compounded annually. 
Investment returns: 
Plan assets (long-term rate of return): 7.50% 
Employer assets (short-term rate of return): 4.00% 
The development of the discount rate used in the valuation is based on
the percentage of the Annual Required Contribution (ARC) funded and
is shown below: 
ARC under fully funded plan 4,167,442 
Pay-as-you-go (PAYG) 1,812,906 
GAP between ARC and PAYG
(1. - 2.) 
2,354,536 
3 
4 
5 
6 
7 
Page 19 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Consumer Price Index: 
Medical Plan Participation: 
Life Insurance Participation: 
Dependent Status: 
Medical Per Capita Costs: 
Age Male Female 
Under 20 $2,765 $3,246 
20-24 $2,179 $3,456 
25-29 $2,267 $5,098 
30-34 $2,848 $6,442 
35-39 $3,572 $6,636 
40-44 $4,451 $6,796 
45-49 $5,618 $7,459 
50-54 $7,404 $8,775 
55-59 $9,621 $10,147 
60-64 $12,348 $12,077 
65-69 $3,242 $3,157 
70-74 $3,885 $3,724 
75-79 $4,588 $4,321 
80-84 $5,273 $4,956 
85-89 $5,874 $5,540 
90-94 $6,395 $5,912 
95+ $6,797 $5,718 
Retiree Contributions: 
Plan 10% 15% 35% 
Non-Medicare 891 $ 1,337 $ 3,120 $ 
Medicare 396 $ 594 $ 1,386 $ 
Male spouses are assumed to be three years older and female
spouses are assumed to be three years younger than the retired
employee. 
70% of eligible retirees will elect to participate. 
70% of eligible retirees will elect to participate. 
3% per year. 
Annual per capita participant contributions for the fiscal year beginning
July 1, 2015 are as follows: 
Annual per capita costs for the fiscal year beginning July 1, 2015 are
as follows: 
50% of employees are assumed to retire with a covered spouse. 
For current retirees, the actual census information is used. 
Page 20 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Excise Tax: 
Actuarial Cost Method: 
Employee Data: Employee and retiree data were submitted by the Town. We made
reasonable adjustments for missing or invalid data. 
Projected Unit Credit. The costs of each employee's postemployment
benefits are allocated on a pro rata basis from the employee's date of
hire to the date the employee is fully eligible for benefits. 
For purposes of estimating the excise tax, per capita plan costs are
developed for individual and family coverage for both Medicare and
non-Medicare members. These plan costs are compared to the
thresholds stipulated in the Patient Protection and Affordable Care Act
(PPACA). Beginning in 2020, a 40% excise tax is applied on the excess
of the plan costs over the thresholds, which increase annually by CPI. 
Page 21 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Post-Retirement Mortality: 
Pre-Retirement Mortality: 
Turnover Rates: 
Service Rate Service Rate 
0 15.00% 0-10 1.50% 
1 12.00% 11+ 0.00% 
2 10.00% 
3 9.00% 
4 8.00% 
5-9 7.60% 
10-14 5.40% 
15-19 3.30% 
20-24 2.00% 
25-29 1.00% 
30+ 0.00% 
Disability Rates: 
Age Rate Age Rate 
25 0.02% 25 0.20% 
30 0.03% 30 0.30% 
35 0.06% 35 0.30% 
40 0.10% 40 0.30% 
45 0.15% 45 1.00% 
50 0.19% 50 1.25% 
55 0.24% 55 1.20% 
60 0.28% 60 0.85% 
SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Post-retirement mortality rates for General and Public Safety employees
are based on the RP-2000 Healthy Annuitant Mortality Table, base year
2009 and projected with generational mortality improvement using
Scale BB. 
Pre-retirement mortality rates for General and Public Safety employees
are based on the RP-2000 Employees Mortality Table, base year 2009
and projected with generational mortality improvement using Scale BB. 
Turnover rates for General and Public Safety employees are as follows: 
Groups 1 and 2 Group 4 
Disability rates for General and Public Safety employees are as follows: 
Groups 1 and 2 Group 4 
55% of the General employee disabilities are job-related. 
90% of the Public Safety employee disabilities are job-related. 
Page 22 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Retirement Rates: 
Group 4 
Age Male Female All 
45-49 0.00% 0.00% 1.00% 
50-54 0.00% 0.00% 2.00% 
55-59 2.00% 5.50% 15.00% 
60-61 12.00% 5.00% 20.00% 
62-64 30.00% 15.00% 25.00% 
65-68 40.00% 15.00% 100.00% 
69 50.00% 20.00% 
70 100.00% 100.00% 
Groups 1 and 2 
Retirement rates for General and Public Safety employees are as 
Page 23 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Post-Retirement Mortality: 
Pre-Retirement Mortality: 
Turnover Rates: 
Age Male Female Male Female Male Female 
20 13.0% 10.0% 5.5% 7.0% 1.5% 5.0% 
30 15.0% 15.0% 5.4% 8.8% 1.5% 4.5% 
40 13.3% 10.5% 5.2% 5.0% 1.7% 2.2% 
50 16.2% 9.8% 7.0% 5.0% 2.3% 2.0% 
Disability Rates: 
Age Rate 
20 0.004% 
30 0.006% 
40 0.010% 
50 0.050% 
60 0.070% 
0 5 10+ 
SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Post-retirement mortality rates for Teachers are based on the RP-2014
Healthy Annuitant Mortality Table, base year 2014, projected with
generational mortality improvement using Scale BB. 
Pre-retirement mortality rates for Teachers are based on the RP-2014
Employees Mortality Table, base year 2014, projected with
generational mortality improvement using Scale BB. 
Turnover rates for Teachers are as follows: 
Service 
Disability rates for Teachers are as follows: 
35% of the disabilities are job-related. 
Page 24 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 7 - ACTUARIAL ASSUMPTIONS AND METHODS 
Retirement Rates: 
Age Male Female Male Female Male Female 
50 0.0% 0.0% 1.0% 1.0% 2.0% 1.5% 
51 0.0% 0.0% 1.0% 1.0% 2.0% 1.5% 
52 0.0% 0.0% 1.0% 1.0% 2.0% 1.5% 
53 0.0% 0.0% 1.5% 1.0% 2.0% 1.5% 
54 0.0% 0.0% 2.5% 1.0% 2.0% 2.0% 
55 5.0% 3.0% 3.0% 3.0% 6.0% 5.0% 
56 5.0% 3.0% 6.0% 5.0% 20.0% 15.0% 
57 5.0% 4.0% 10.0% 8.0% 40.0% 35.0% 
58 5.0% 8.0% 15.0% 10.0% 50.0% 35.0% 
59 10.0% 8.0% 20.0% 15.0% 50.0% 35.0% 
60 10.0% 10.0% 25.0% 20.0% 40.0% 35.0% 
61 20.0% 12.0% 30.0% 25.0% 40.0% 35.0% 
62 20.0% 12.0% 35.0% 30.0% 35.0% 35.0% 
63 25.0% 15.0% 40.0% 30.0% 35.0% 35.0% 
64 25.0% 20.0% 40.0% 30.0% 35.0% 35.0% 
65 25.0% 25.0% 40.0% 40.0% 35.0% 35.0% 
66 30.0% 25.0% 30.0% 30.0% 40.0% 35.0% 
67 30.0% 30.0% 30.0% 30.0% 40.0% 30.0% 
68 30.0% 30.0% 30.0% 30.0% 40.0% 30.0% 
69 30.0% 30.0% 30.0% 30.0% 40.0% 30.0% 
70 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 
Less than 20 20-30 30+ 
Years of Service 
Retirement rates for Teachers are as follows: 
Page 25 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Age 0 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 & up Total Percent 
Under 25 32 1 0 0 0 0 0 0 0 33 7% 
25 to 29 55 4 2 0 0 0 0 0 0 61 15% 
30 to 34 29 10 5 1 0 0 0 0 0 45 10% 
35 to 39 23 11 6 3 0 0 0 0 0 43 10% 
40 to 44 18 6 13 7 0 0 0 0 0 44 10% 
45 to 49 11 13 7 9 10 4 0 0 0 54 12% 
50 to 54 8 10 14 7 9 9 1 0 0 58 13% 
55 to 59 11 5 11 10 6 7 4 1 0 55 12% 
60 to 64 2 1 3 7 9 8 2 4 0 36 8% 
65 to 69 1 1 3 1 0 2 2 0 1 11 2% 
70 & up 0 0 0 0 1 2 1 0 0 4 1% 
Total 190 62 64 45 35 32 10 5 1 444 
Percent 44% 14% 14% 10% 8% 7% 2% 1% 0% 100% 
Average Age: 43.8 Average Service: 10.2 
0.01 
TABLE 8.1 - ACTIVE EMPLOYEES BY AGE and YEARS OF SERVICE AS OF JULY 1, 2015 
Years of Service 
SECTION 8 - PLAN MEMBER INFORMATION 
Page 26 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

TABLE 8.2 - RETIRED PLAN PARTICIPANTS, COVERED SPOUSES and SURVIVORS AS OF JULY 1, 2015 
SECTION 8 - PLAN MEMBER INFORMATION 
Non-Medicare Plans: 
Age 
Fallon Direct Care 
Fallon Select
Care 
HP Independence
Plan 
HP Primary
Choice 
Health New
England 
NHP Care
(Neighborhood
Health Plan) 
Tufts Health Plan
Navigator 
Tufts Health Plan
Spirit 
UniCare Basic
with CIC 
Total 
Under 40 1 0 0 0 0 0 0 0 0 1 
40 to 44 0 0 0 0 0 0 0 0 0 0 
45 to 49 0 0 0 0 0 0 0 0 0 0 
50 to 54 3 0 1 0 0 0 0 0 0 4 
55 to 59 4 0 5 2 0 0 0 0 0 11 
60 to 64 11 0 12 1 0 0 1 0 2 27 
65 to 69 5 1 8 1 0 0 0 0 4 19 
70 to 74 0 0 2 2 0 0 1 0 1 6 
75 to 79 1 0 0 0 0 0 0 0 3 4 
80 to 84 0 0 0 0 0 0 0 0 0 0 
85 to 89 0 0 0 0 0 0 0 0 0 0 
90+ 0 0 0 0 0 0 0 0 0 0 
Total 25 1 28 6 0 0 2 0 10 72 
Covered
Spouses 8 1 10 2 0 0 0 0 5 26 
Page 27 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

TABLE 8.2 - RETIRED PLAN PARTICIPANTS, COVERED SPOUSES and SURVIVORS AS OF JULY 1, 2015 
SECTION 8 - PLAN MEMBER INFORMATION 
Medicare Plans: 
Age 
Fallon
Senior 
HP Medicare
Enhanced 
Health NE
MedPlus 
Tufts
Medicare
Complement 
Tufts
Medicare
Preferred 
UniCare
OME w/CIC 
UniCare
OME w/o CIC 
#N/A 
Life Only 
Total 
Under 40 0 0 0 0 0 0 0 0 0 0 
40 to 44 0 0 0 0 0 0 0 0 0 0 
45 to 49 0 0 0 0 0 0 0 0 1 1 
50 to 54 0 0 0 0 0 0 0 0 0 0 
55 to 59 1 0 0 0 0 0 0 0 1 2 
60 to 64 8 0 0 1 0 2 0 0 0 11 
65 to 69 25 15 0 1 1 11 0 0 3 56 
70 to 74 20 5 3 0 0 19 0 0 1 48 
75 to 79 26 0 0 1 0 8 0 0 4 39 
80 to 84 13 0 0 0 1 6 0 0 1 21 
85 to 89 9 0 0 0 0 2 0 0 3 14 
90+ 6 0 0 0 0 5 0 0 1 12 
Total 108 20 3 3 2 53 0 0 15 204 
Covered
Spouses 32 18 1 0 1 16 0 0 68 
Page 28 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 9 - GASB 45 GLOSSARY OF TERMS 
Explicit Subsidy – The difference between (a) the blended rates based on combined active and retired
member experience and (b) actual cash contributions made by the employer. 
Annual Required Contribution (ARC) – Includes the employer's Normal Cost and a provision for
amortizing the Unfunded Actuarial Accrued Liability. 
Annual OPEB Cost - The accrual basis annual cost for the OPEB plan sponsored by the employer. In
the year of implementation of GASB 45, the Annual OPEB Cost equals the ARC. In subsequent years, if
an employer has a Net OPEB Obligation, Annual OPEB Cost equals the ARC plus one year's interest on
the Net OPEB Obligation plus an adjustment to the ARC. 
Funded Ratio – The Actuarial Value of Assets expressed as a percentage of the Actuarial Accrued
Liability. 
Health Cost Trend Rate – The rate of change in per capita health claims cost over time as a result of
factors such as medical inflation, utilization of healthcare services, plan design, and technological
developments. 
Implicit Subsidy – In an experience-rated healthcare plan that includes both active employees and
retirees with blended premium rates for all plan members, the difference between (a) the age-adjusted
premiums approximating claim costs for retirees in the group and (b) the blended rates based on
combined active and retired member experience. 
Actuarial Accrued Liability – The portion of the Actuarial Present Value of future benefits which is
allocated to all periods prior to a valuation year and therefore is not provided by future Normal Costs. 
Actuarial Assumptions – Assumptions as to the occurrence of future events affecting OPEB costs,
such as mortality, withdrawal, disablement and retirement; changes in compensation and Government
provided pension benefits; rates of investment earnings and asset appreciation or depreciation;
procedures used to determine the Actuarial Value of Assets; characteristics of future entrants for Open
Group Actuarial Cost Methods; and other relevant items. 
Actuarial Value of Assets – The value of plan assets used in an actuarial valuation. The Actuarial
Value of Assets may reflect smoothing techniques intended to dampen year-to-year fluctuations in the
market value of assets. 
Actuarial Present Value of Future Benefits – The present value of the cost to finance all benefits
payable in the future, discounted to reflect the probability of payment and the time value of money. 
Actuarial Valuation – the determination, as of a valuation date, of the Normal Cost, Actuarial Accrued
Liability, Actuarial Value of Assets and related Actuarial Present Values for an OPEB plan. 
Page 29 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

SECTION 9 - GASB 45 GLOSSARY OF TERMS 
• 
• 
• 
Projected Unit Credit Actuarial Cost Method – A method under which the projected benefits of each
individual included in an Actuarial Valuation are allocated by a consistent formula to valuation years.
Projected Unit Credit is one of the actuarial cost methods allowed and most often used for developing
liabilities under GASB 45. 
Plan Assets – Investments segregated and restricted in a trust or similar arrangement under which: 
Pay-As-You-Go – A method of financing an OPEB plan under which the contributions to the plan are
generally made at about the same time and in about the same amount as benefit payments and
expenses becoming due. 
assets are legally protected from creditors. 
employer contributions to the trust are irrevocable, 
Substantive Plan – The terms of an OPEB plan as understood by the employer and plan members. 
Unfunded Actuarial Accrued Liability – The excess of Actuarial Accrued Liability over the Actuarial
Value of Assets. 
OPEB – Other Postemployment Benefits including medical, dental, vision, hearing and life insurance
benefits. 
Present Value of Future Benefits – The actuarial present value of the cost to finance benefits payable
in the future, discounted to reflect the expected effects of the time value of money and the
probabilities of payment. 
assets are dedicated to providing plan benefits, and 
Net OPEB Obligation – The cumulative excess since adoption of GASB 45 of Annual OPEB Cost over
the employer's contributions to the plan. 
Normal Cost – The portion of the Actuarial Present Value of Future Benefits which is allocated to a
valuation year. 
Page 30 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Unit Town School Water Sewer Recreation Rink Harbor Total 
1 2 3 4 5 6 7 
Summary of Member Data 
Active Members 122 299 7 9 2 4 1 444 
Average Age 48.0 41.6 50.5 49.3 51.7 56.9 29.4 43.8 
Average Service 13.6 8.9 8.4 14.8 15.0 4.0 0.0 10.2 
Retired Members and Survivors 119 157 0 0 0 0 0 276 
Average Age 73.7 70.2 0.0 0.0 0.0 0.0 0.0 71.7 
Covered Spousess 30 64 0 0 0 0 0 94 
Actuarial Accrued Liability - July 1, 2015 
Active Employees 13,735,916 22,005,829 412,482 799,192 286,148 140,204 3,215 37,382,986 
Retired Employees and Survivors 12,218,241 22,547,368 0 0 0 0 0 34,765,609 
Total 25,954,157 44,553,197 412,482 799,192 286,148 140,204 3,215 72,148,595 
Actuarial Value of Plan Assets - July 1, 2015 18,028 30,948 287 555 199 97 2 50,116 
Unfunded Actuarial Accrued Liability 25,936,129 44,522,249 412,195 798,637 285,949 140,107 3,213 72,098,479 
Annual Required Contribution (ARC) for FYE 2016 
Normal Cost 532,551 1,406,322 22,464 29,838 8,190 14,766 1,763 2,015,894 
Amortization of UAL 1,442,499 2,476,210 22,925 44,418 15,904 7,792 179 4,009,927 
Interest 79,002 155,301 1,816 2,970 964 902 78 241,033 
Total 2,054,052 4,037,833 47,205 77,226 25,058 23,460 2,020 6,266,854 
Annual OPEB Cost for FYE 2016 
Annual Required Contribution 2,054,052 4,037,833 47,205 77,226 25,058 23,460 2,020 6,266,854 
Interest on Net OPEB Obligation 389,729 358,749 0 0 5,191 1,827 0 755,496 
Adjustment to annual required contribution (563,519) (518,723) 0 0 (7,505) (2,641) 0 (1,092,388) 
Annual OPEB cost/(expense) 1,880,262 3,877,859 47,205 77,226 22,744 22,646 2,020 5,929,962 
Expected Employer premiums (722,382) (1,084,579) (1,183) (2,689) (621) (1,452) 0 (1,812,906) 
OPEB Trust contributions (16,388) (32,216) (377) (616) (200) (187) (16) (50,000) 
Employer contributions (including subsidy) (738,770) (1,116,795) (1,560) (3,305) (821) (1,639) (16) (1,862,906) 
Change in Net OPEB Obligation 1,141,492 2,761,064 45,645 73,921 21,923 21,007 2,004 4,067,056 
Net OPEB Obligation - beginning of year 9,743,233 8,968,718 0 0 129,770 45,668 0 18,887,389 
Net OPEB Obligation - end of year 10,884,725 11,729,782 45,645 73,921 151,693 66,675 2,004 22,954,445 
SECTION 10 - RESULTS BY SUBGROUP 
Page 31 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015

Unit Town School Water Sewer Recreation Rink Harbor Total 
1 2 3 4 5 6 7 
SECTION 10 - RESULTS BY SUBGROUP 
Actuarial Accrued Liability - July 1, 2016 
Total 26,809,488 46,691,843 451,137 859,449 305,478 159,688 5,177 75,282,260 
Actuarial Value of Assets - July 1, 2016 36,367 63,338 612 1,166 414 217 7 102,121 
Unfunded Actuarial Accrued Liability 26,773,121 46,628,505 450,525 858,283 305,064 159,471 5,170 75,180,139 
Annual Required Contribution (ARC) for FYE 2017 
Normal Cost 553,853 1,462,573 23,363 31,032 8,518 15,357 1,834 2,096,530 
Amortization of UAL 1,489,050 2,593,354 25,057 47,735 16,967 8,869 288 4,181,320 
Interest 81,716 162,237 1,937 3,151 1,019 969 85 251,114 
Total 2,124,619 4,218,164 50,357 81,918 26,504 25,195 2,207 6,528,964 
Annual OPEB Cost for FYE 2017 
Annual Required Contribution 2,124,619 4,218,164 50,357 81,918 26,504 25,195 2,207 6,528,964 
Interest on Net OPEB Obligation 435,389 469,191 1,826 2,957 6,068 2,667 80 918,178 
Adjustment to annual required contribution (629,539) (678,415) (2,640) (4,275) (8,773) (3,856) (116) (1,327,614) 
Annual OPEB cost/(expense) 1,930,469 4,008,940 49,543 80,600 23,799 24,006 2,171 6,119,528 
Expected Employer premiums (751,243) (1,172,085) (2,604) (4,497) (1,427) (2,718) (1) (1,934,575) 
OPEB Trust contributions (16,271) (32,303) (386) (627) (203) (193) (17) (50,000) 
Employer contributions (including subsidy) (767,514) (1,204,388) (2,990) (5,124) (1,630) (2,911) (18) (1,984,575) 
Change in Net OPEB Obligation 1,162,955 2,804,552 46,553 75,476 22,169 21,095 2,153 4,134,953 
Net OPEB Obligation - beginning of year 10,884,725 11,729,782 45,645 73,921 151,693 66,675 2,004 22,954,445 
Net OPEB Obligation - end of year 12,047,680 14,534,334 92,198 149,397 173,862 87,770 4,157 27,089,398 
Notes: 
Actuarial Value of Assets allocated to subgroups based on Actuarial Accrued Liability. 
OPEB Trust Contributions allocated to subgroups based on Annual Required Contribution (ARC). 
Page 32 
Town of Winthrop Postemployment Benefits Other Than Pensions
Actuarial Valuation as of July 1, 2015