Fiscal 2017 valuation

Town of Winthrop · from the Town's website · 37 pages · 1.1 MB
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March, 2018 
TOWN OF WINTHROP, MASSACHUSETTS 
ACTUARIAL VALUATION 
as of 
July 1, 2015 
Manchester, NH 03101 
OTHER POSTEMPLOYMENT BENEFITS PROGRAM 
FINANCIAL REPORTING AND DISCLOSURES UNDER 
GASB 45 and GASB 74 
June 30, 2017 
as of 
KMS Actuaries, LLC 
814 Elm Street, Suite 204

Mr. Michael Perez 
Chief Financial Officer 
Town of Winthrop 
1 Metcalf Square 
Winthrop, MA 02152 
Dear Michael: 
 
 
Our calculations are based on member census data and other information provided by the Town of
Winthrop as well as health plan rates provided by the Town as of July 1, 2016. Although we did not
audit the data used in the valuation and disclosure calculations, we believe that the information is
complete and reliable. 
March 23, 2018 
We are pleased to present the enclosed report of the July 1, 2015 actuarial valuation of the retiree
health care benefits for the Town of Winthrop. The valuation was prepared in accordance with, and for
the purpose of financial reporting and disclosures as of June 30, 2017, under the following
Government Accounting Standards Board (GASB) Statements: 
The Principal Valuation Results, including assets, liabilities and the development of future
contributions, are provided in Section 1. The Notes to the Financial Statements and the Required
Supplementary Information are provided in Sections 2 and 3, respectively. Employer Reporting
Amounts Under GASB 45 are provided in Section 4. The Summary of Plan Provisions and Actuarial
Assumptions and Methods are shown in Sections 5 and 6, respectively. Section 7 summarizes the
demographic profile of active members and retired members, covered spouses and survivors. Finally,
a Glossary of Terms is provided in Section 8. 
GASB Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions (GASB 45) 
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans (GASB 74)

Page 2 
Mr. Michael Perez 
March 23, 2018 
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. 
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. 
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. 
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. 
(508) 628-9022 (603) 792-9494 
Liabilities presented in this report are based on a discount rate of 3.58%, a long-term investment return
rate of 7.5% and a municipal bond rate of 3.58%. 
The expected claims, cost trend rates, and analysis of regulatory changes have been developed based on
the expertise of the undersigned health and welfare actuary, Christopher E. Bean, ASA, MAAA. The
undersigned credentialed actuaries are Members of the American Academy of Actuaries and 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. 
Linda L. Bournival, FSA 
Member, American Academy of Actuaries 
Respectfully submitted, 
Christopher E. Bean, ASA, MAAA 
Member, American Academy of Actuaries

EXECUTIVE SUMMARY 1 
SECTION 1 - PRINCIPAL VALUATION RESULTS 5 
Exhibit 1.1 - OPEB Trust Assets 
Exhibit 1.2 - Total OPEB Liability 
Exhibit 1.3 - Development of Actuarially Determined Contributions 
SECTION 2 - NOTES TO THE FINANCIAL STATEMENTS 8 
Exhibit 2.1 - Plan Description 
Exhibit 2.2 - Net OPEB Liability 
SECTION 3 - SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION 12 
Exhibit 3.1 - Changes in Net OPEB Liability and Related Ratios 
Exhibit 3.2 - Investment Returns 
Exhibit 3.3 - Schedule of Employer Contributions 
SECTION 4 - EMPLOYER REPORTING AMOUNTS 16 
Exhibit 4.1 - Accounting Disclosures under GASB 45 
SECTION 5 - SUMMARY OF PLAN PROVISIONS 17 
SECTION 6 - ACTUARIAL ASSUMPTIONS AND METHODS 19 
SECTION 7 - PLAN MEMBER INFORMATION 26 
Exhibit 7.1 - Active Members by Age and Years of Service 
Exhibit 7.2 - Retired Members, Covered Spouses and Survivors 
SECTION 8 - GLOSSARY OF TERMS 29 
SECTION 9 - RESULTS BY SUBGROUP 31 
Appendix A CALCULATION OF SINGLE DISCOUNT RATE 
Appendix B SCHEDULE OF DEFERRED OUTFLOWS OF RESOURCES and 13 
DEFERRED INFLOWS OF RESOURCES 
TABLE OF CONTENTS 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

 
 
(1) 
(2) 
In June 2015, the GASB approved two related Statements that significantly changed the way other
postemployment benefits (OPEB) plans and governments account and report OPEB liabilities. Effective for
plans with fiscal years beginning after June 15, 2016, GASB Statement No. 74 (GASB 74), Financial
Reporting for Postemployment Benefit Plans Other Than Pension Plans, replaced the requirements of
Statement No. 43 and effective for employers with fiscal years beginning after June 15, 2017, GASB
Statement No. 75 (GASB 75), Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions, replaced the requirements of Statement No. 45. 
GASB 74 requires OPEB plans to present a statement of fiduciary net position (OPEB plan assets) and a
statement of changes in fiduciary net position. Further, the statement requires that notes to financial
statements include descriptive information such as the types of benefits provided, the classes of plan
members covered and the authority under which benefit terms are established or may be amended.
Finally, GASB 74 requires OPEB plans to present in required supplementary information the sources of the
changes in the net OPEB liability and information about the actuarially determined contributions compared
with the actual contributions made to the plan and related ratios. 
GASB 74 and GASB 75 require projected benefit payments be discounted to their actuarial present value
using the single rate that reflects: 
a tax-exempt, high-quality municipal bond rate to the extent that the conditions for use of the
long-term expected rate of return are not met. 
GASB 75 establishes standards for measuring and recognizing liabilities, deferred outflows of resources,
deferred inflows of resources and OPEB expense by state and local governments. 
EXECUTIVE SUMMARY 
This report presents the results of the actuarial valuation of the Town of Winthrop's retiree health care
benefits as of July 1, 2015. The valuation was prepared in accordance with, and for the purpose of
financial reporting and disclosures as of June 30, 2017, under the following Government Accounting
Standards Board (GASB) Statements: 
GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions (GASB 45) 
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans (GASB 74) 
The results as of the measurement date are based on a roll forward of the liabilities developed in the most
recent actuarial valuation. 
New Accounting Standards 
a long-term expected rate of return on OPEB plan investments to the extent that the OPEB
plan's assets are sufficient to pay benefits and OPEB plan assets are expected to be invested
using a strategy to achieve that return and 
Page 1 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

2017 2016 
Measurement Date June 30, 2017 June 30, 2016 
Increase/
(Decrease) 
Membership Data 
Active Members 439 N/A 
Inactive Plan Members 273 N/A 
Total Plan Members 712 N/A 
Valuation Results (GASB 45) 
Annual Required Contribution $6,531,965 $6,010,571 8.7% 
Net OPEB Obligation $26,134,454 $22,004,557 18.8% 
Valuation Results (GASB 74) 
Total OPEB Liability $78,519,883 $85,116,698 (7.8%) 
Fiduciary Net Position $175,778 $50,232 249.9% 
Net OPEB Liability $78,344,105 $85,066,466 (7.9%) 
Discount rate 3.58% 2.85% 
EXECUTIVE SUMMARY 
Town of Winthrop Other Postemployment Benefits Program 
The effective date for GASB 74 is for plan years beginning after June 15, 2016, which is the fiscal year ending June 30,
2017 for the Town of Winthrop. The effective date for GASB 75 is for fiscal years beginning after June 15, 2017, which
is the fiscal year ending June 30, 2018 for the Town of Winthrop. 
Total OPEB Liability 
The Total OPEB Liability as of the current measurement date, June 30, 2017, is $78,519,883. The Total OPEB
Liability as of the prior measurement date, June 30, 2016, was $85,116,698. The development of the Total OPEB
Liability for the current and prior measurement dates is shown in Section 1, Exhibit 1.2. 
GASB 45 and GASB 74 
A summary of principal results from the current and prior measurement dates follows: 
Experience Gain and Loss 
In developing the Total OPEB Liability, various assumptions are made regarding future premium rates, mortality,
retirement, disability and turnover rates. A comparison of the results of the current and prior measurements is made
to determine how closely actual experience relates to expected. For the current measurement period, there is no
experience gain or loss as the Total OPEB liability was developed from a roll forward of results of the most recent
valuation. 
Changes of Assumptions 
The discount rate changed from 2.85% as of June 30, 2016 to 3.58% as of June 30, 2017. All other assumptions
were the same as those used in the previous measurement. 
Changes of Benefit Terms 
As this is the first year of recognizing the Total OPEB Liability under GASB 74, there are no changes in Benefit Terms. 
Page 2 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

2017 2016 
EXECUTIVE SUMMARY 
Valuation Date July 1, 2015 July 1, 2013 
Increase/
(Decrease) 
Membership Data 
Active Members 444 415 7.0% 
Average Age 43.8 45.8 (4.3%) 
Average Service 10.2 11.5 (11.0%) 
Covered Payroll Not available $19,953,536 0.0% 
Retired Members and Survivors 276 274 0.7% 
Average Age 71.7 72.1 (0.6%) 
Covered Spouses 94 114 (17.5%) 
Valuation Results (GASB 45) 
Actuarial Accrued Liability $72,148,595 $62,958,152 14.6% 
Market Value of Assets $50,232 $0 0.0% 
Unfunded Actuarial Accrued Liability $72,098,363 $62,958,152 14.5% 
Funded Ratio 0.1% 0.0% 0.0% 
Normal Cost $2,015,894 $1,873,039 7.6% 
Expected Benefit Payments $1,812,906 $2,134,857 (15.1%) 
Annual Required Contribution $6,266,854 $5,589,589 12.1% 
Fiduciary Net Position 
The Fiduciary Net Position is equal to the market value of assets and as of the current measurement date, June 30,
2017, is $175,778. The Fiduciary Net Position as of the prior measurement date, June 30, 2016, was $50,232. The
Fiduciary Net Position is shown in Section 1, Exhibit 1.1. 
ACTUARIAL VALUATION 
A summary of principal valuation results from the current valuation and the prior valuation follows. Changes in
actuarial assumptions and methods and Plan provisions are discussed below, as well as changes in census data and
asset information. 
As of the June 30, 2017 measurement date, the OPEB plan's fiduciary net position was projected to be insufficient to
make all projected benefit payments of current plan members. Therefore, the 3.58% municipal bond rate was applied
to all periods to determine the total OPEB liability. 
Discount Rate 
Page 3 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

2017 2016 
EXECUTIVE SUMMARY 
All of the Plan provisions used in this valuation are the same as those used in the last valuation and are detailed in
Section 5, Summary of Plan Provisions. 
Employer Future Period Contributions 
The Town does not currently have a formal funding policy. 
Census Data 
As of July 1, 2015, there are 444 active members who may be eligible for benefits in the future and 370 retired
members, covered spouses and survivors. Summaries of the active members and retired members, covered spouses
and survivors are included in Section 7, Plan Member Information. 
Assets 
This valuation is based upon asset information provided by the Town. The market value of assets increased from $0
as of July 1, 2013 to $50,232 as of July 1, 2015. 
Actuarial Gain / Loss Analysis 
In performing the actuarial valuation, various assumptions are made regarding future premium rates, mortality,
retirement, disability and turnover 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. The
various sources of gains and losses for the current two-year period on account of assumption and method changes
are described on page 5 of the Actuarial Valuation report dated August 4, 2017. 
Actuarial Assumptions and Methods 
Some of the Actuarial Assumptions and Methods, including the mortality tables, pre-retirement decrements,
participation rates, and payroll increase rate have been changed since last valuation. The Actuarial Assumptions and
Methods utilized in this valuation are detailed in Section 6, Actuarial Assumptions and Methods. 
Plan Provisions 
Page 4 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Fiscal Year Ended June 30 2017 2016 
Trust Fund Composition at Fiscal Year-End 
Cash and Equivalents $175,778 $50,232 
Total Market Value of Assets $175,778 $50,232 
Asset Activity 
Market value, beginning of year $50,232 $50,116 
Employer Premiums 1,934,575 1,812,906 
OPEB Trust Contributions 125,000 - 
Benefit Payments (1,934,575) (1,812,906) 
Expenses - - 
Investment Return 546 116 
Market value, end of year $175,778 $50,232 
Money-Weighted Rate of Return 0.44% 
(Gain) / Loss on OPEB Plan Investments 
Projected earnings $8,455 $3,759 
Actual earnings 546 116 
(Gain) / Loss on OPEB plan investments $7,909 $3,643 
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. Asset information for the current and prior
fiscal years was provided by the Town and is presented below: 
Exhibit 1.1 - OPEB Trust Assets 
SECTION 1 - PRINCIPAL VALUATION RESULTS 
Page 5 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Measurement Date June 30, 2017 June 30, 2016 
Valuation Date July 1, 2015 July 1, 2015 
Discount Rate 3.58% 2.85% 
Actives 33,828,717 $ 39,789,331 $ 
Retirees, Covered Spouses and Survivors 36,872,776 40,893,747 
Total OPEB Liability 70,701,493 $ 80,683,078 $ 
Service Cost 3,050,744 $ 3,862,802 $ 
Expected Benefit Payments 
Current retirees 1,675,644 $ 1,675,644 $ 
Future retirees 137,262 137,262 
Total 1,812,906 $ 1,812,906 $ 
Measurement Date: June 30, 2017 June 30, 2016 
Discount Rate 3.58% 2.85% 
Actives 40,998,213 $ 44,757,001 $ 
Retirees, Covered Spouses and Survivors 37,521,670 40,359,697 
Total OPEB Liability 78,519,883 $ 85,116,698 $ 
Change in Total OPEB Liability: 
Assumption changes (11,146,618) $ 
Benefit changes - $ 
The Service Cost is the portion of the actuarial present value of projected benefit payments that is
attributed to a valuation year. Only active employees who have not reached the age at which the
probability of retirement is 100% incur a service cost. 
SECTION 1 - PRINCIPAL VALUATION RESULTS 
The Total OPEB Liability, developed using the Entry Age Normal funding method, is the portion of the
actuarial present value of projected benefit payments that is attributed to past periods of member service.
The total OPEB liability as of the June 30, 2017 measurement date was developed from an actuarial
valuation as of July 1, 2015 and rolled forward to the OPEB plan's fiscal year-end. 
Exhibit 1.2 - Total OPEB Liability 
The Total OPEB Liability as of the fiscal year-end, or measurement date, is developed through the use of
update procedures to roll forward the results of the valuation as of the beginning of the measurement
period. 
The Total OPEB Liability changed due to: 
Page 6 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Pay-as-you-go Full Funding 
4.00% 7.5% 
1. Normal Cost $2,096,530 $724,428 
2. Unfunded Actuarial Accrued Liability 
a. Actuarial Accrued Liability $75,282,260 $42,339,672 
b. Actuarial Value of Plan Assets $50,232 $50,232 
c. Unfunded Actuarial Accrued Liability $75,232,028 $42,289,440 
3. Amortization of Unfunded Actuarial 
Accrued Liability 
a. Unfunded Actuarial Accrued Liability $75,232,028 $42,289,440 
b. Amortization Period in years 30 30 
c. Payroll Growth Rate 0.0% 0.0% 
d. Amortization Factor 17.98 12.70 
e. Amortization Amount (3.a. / 3.d.) $4,184,206 $3,329,877 
4. $251,229 $304,073 
5. Annual Required Contribution (1. + 3.e. + 4.) $6,531,965 $4,358,378 
6. Actual Employer Contribution to OPEB Trust $75,000 $75,000 
7. Expected Benefit Payments $1,934,575 $1,934,575 
8. Total Contribution (6.+ 7.) $2,009,575 $2,009,575 
Discount Rate 
Interest on 1. and 3.e. 
SECTION 1 - PRINCIPAL VALUATION RESULTS 
Exhibit 1.3 - Development of Annual Required Contributions 
The Town does not currently have a formal funding policy. 
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, 2016, the ARC, calculated under the parameters of this actuarial valuation, would be: 
Page 7 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Inactive plan members or beneficiaries currently receiving benefit payments 1 273 
Inactive plan members entitled to but not yet receiving benefit payments 0 
Active plan members 439 
712 
SECTION 2 - NOTES TO THE FINANCIAL STATEMENTS 
Exhibit 2.1 - Plan Description 
Plan membership: 
Benefits provided: 
At June 30, 2017, OPEB plan membership consisted of the following: 
The Town of Winthrop administers the retiree health care benefits program - a single-employer
defined benefit plan that is used to provide postemployment benefits other than pensions (OPEB)
for all permanent full-time employees. 
1 Per paragraph 34a of GASB 74 and further clarified by Question 4.67 of the 2017-2 GASB 74 Implementation Guide, the
total shown for inactive plan members or beneficiaries currently receiving benefit payments does not include covered
spouses or other dependents. 
The Town does not currently have a formal funding policy. 
Funding the plan over the long-term allows UMS to smooth market impacts, limiting contribution
volatility. The required contribution amount will be re-determined with each actuarial valuation as
market performance and other factors will impact the required future funding. 
Contributions: 
Plan administration: 
The Town provides health care benefits for retirees and their dependents. Benefits are provided
through the GIC, and the full cost of benefits is shared between the Town and retirees. 
Page 8 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

78,519,883 $ 
(175,778) 
78,344,105 $ 
0.22% 
Inflation 2.6 percent 
Investment rate of return 7.5%, net of investment expenses, including inflation 
Discount rate 3.58%, net of investment expenses, including inflation 
Healthcare cost trend rate 
SECTION 2 - NOTES TO THE FINANCIAL STATEMENTS 
Exhibit 2.2 - Net OPEB Liability 
The components of the net OPEB liability at June 30, 2017, were as follows: 
Total OPEB liability 
Fiduciary net position 
Net OPEB liability 
Fiduciary net position as a percentage of the total OPEB liability 
8 percent for 2015, decreasing 0.5 percent per year to an
ultimate rate of 5 percent for 2021 and later years. 
Pre-Retirement Mortality - General and Public
Safety employees: 
RP-2000 Employees Mortality Table, base year 2009, projected
with generational mortality improvement using scale BB. 
Post-Retirement Mortality - General and Public
Safety employees: 
RP-2000 Healthy Annuitant Mortality Table, base year 2009,
projected with generational mortality improvement using scale
BB. 
Actuarial assumptions: 
The total OPEB liability was determined by an actuarial valuation as of July 1, 2015, using the following actuarial
assumptions, applied to all periods included in the measurement: 
Post-Retirement Mortality - Teachers: RP-2014 Healthy Annuitant Mortality Table, base year 2014,
projected with generational mortality improvement using scale
BB. 
Pre-Retirement Mortality - Teachers: RP-2014 Employees Mortality Table, base year 2014, projected
with generational mortality improvement using scale BB. 
Page 9 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 2 - NOTES TO THE FINANCIAL STATEMENTS 
Exhibit 2.2 - Net OPEB Liability 
Asset Class 
Target
Allocation 
Cash and Equivalents 100% 
Total 100% 
Discount rate: 
0.00% 
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included in the target asset allocation as of June 30, 2017 are summarized in the following table: 
Long-Term Expected
Real Rates of Return 
The discount rate used to measure the total OPEB liability was 3.58%. The projection of cash flows used to
determine the discount rate assumed that contributions from the Town will be made in accordance with the
plan's funding policy. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be
insufficient to make all projected benefit payments of current plan members. Therefore, the 3.58% municipal
bond rate was applied to all periods to determine the total OPEB liability. 
Page 10 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 2 - NOTES TO THE FINANCIAL STATEMENTS 
Exhibit 2.2 - Net OPEB Liability 
Sensitivity of the net OPEB liability to changes in the discount rate: 
1% Decrease Discount Rate 1% Increase 
(2.58%) (3.58%) (4.58%) 
Net OPEB Liability 94,253,354 $ 78,344,105 $ 66,086,075 $ 
1% Decrease 
Healthcare
Cost Trend
Rates 1% Increase 
7% Year 1
Decreasing to
4% 
8% Year 1
Decreasing to
5% 
9% Year 1
Decreasing to
6% 
Net OPEB Liability 63,962,993 $ 78,344,105 $ 97,662,481 $ 
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates: 
The following presents the net OPEB liability calculated using the current healthcare cost trend rates as well as
what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage
point lower (7% year 1 decreasing to 4%) or 1-percentage point higher (9% year 1 decreasing to 6%) than the
current healthcare cost trend rates: 
The following presents the net OPEB liability calculated using the current discount rate of 3.58 percent, as well as
what the net OPEB liability would be if it were calculated using a discount rate 1-percentage point lower (2.58
percent) or 1-percentage point higher (4.58 percent) than the current rate: 
Page 11 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Fiscal Year Ended June 30 2017 2016 
Total OPEB Liability 
Service cost 3,972,892 $ 
Interest 2,511,486 
Changes of benefit terms - 
Differences between expected and actual experience - 
Changes of assumptions (11,146,618) 
Benefit payments (1,934,575) 
Net change in total OPEB liability (6,596,815) $ 
Total OPEB liability--beginning 85,116,698 $ 
Total OPEB liability--ending (a) 78,519,883 $ 85,116,698 $ 
Plan fiduciary net position 
Contributions--employer 2,059,575 $ 
Net investment income 546 
Benefit payments (1,934,575) 
Administrative expenses - 
Other - 
Net change in plan fiduciary net position 125,546 $ 
Plan fiduciary net position--beginning 50,232 $ 50,116 $ 
Plan fiduciary net position--ending (b) 175,778 $ 50,232 $ 
Net OPEB liability--ending (a) -- (b) 78,344,105 $ 85,066,466 $ 
Plan fiduciary net position as a percentage of the
total OPEB liability 0.22% 0.06% 
Covered payroll 23,956,755 $ 23,956,755 $ 
Net OPEB liability as a percentage of covered payroll 327.02% 355.08% 
Exhibit 3.1 - Changes in Net OPEB Liability and Related Ratios 
SECTION 3 - REQUIRED SUPPLEMENTARY INFORMATION 
Page 12 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Fiscal Year Ended June 30 2017 2016 
Annual money-weighted rate of return,
net of investment expenses 0.44% 
Exhibit 3.2 - Investment Returns 
SECTION 3 - REQUIRED SUPPLEMENTARY INFORMATION 
The money-weighted rate of return considers the changing amounts actually invested
during a period and weights the amount of OPEB plan investments by the proportion of
time they are available to earn a return during that period. The rate of return is then
calculated by solving, through an iterative process, for the rate that equates the sum of
the weighted external cash flows into and out of the OPEB plan investments to the
ending fair value of OPEB plan investments. 
Page 13 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Calculation of Money-Weighted Rate of Return 
Plan
Investments/
Net External
Cash Flows
(a) 
Periods
Invested
(b) 
Period
Weight
(c)=(b)÷12 
(d)=(a) x
(1+r mw ) (c) 
Beginning value - July 1, 2016 50,232 $ 12 1.00 50,455 $ 
Monthly net external cash flows: 
July - 11 0.92 - 
August - 10 0.83 - 
September - 9 0.75 - 
October - 8 0.67 - 
November 125,000 7 0.58 125,323 
December - 6 0.50 - 
January - 5 0.42 - 
February - 4 0.33 - 
March - 3 0.25 - 
April - 2 0.17 - 
May - 1 0.08 - 
June - 0 0.00 - 
Ending value - June 30, 2017 175,778 $ 175,778 $ 
Money-weighted rate of return: 0.44% 
SECTION 3 - REQUIRED SUPPLEMENTARY INFORMATION 
Exhibit 3.2 - Investment Returns 
Page 14 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Fiscal Year Ended June 30 2017 
Actuarially determined contribution 6,531,965 $ 
Contributions in relation to the
actuarially determined contribution 2,059,575 
Contribution deficiency (excess) 4,472,390 $ 
Covered payroll 23,956,755 $ 
Contributions as a percentage of
covered payroll 8.60% 
Notes to Schedule 
Actuarial cost method 
Amortization method 
Amortization period 
Asset valuation method 
Inflation 
Healthcare cost trend rates 
Investment rate of return 
Level dollar amount over 30 years on
an open amortization period 
Methods and assumptions used in calculations of actuarially determined contributions: 
Projected Unit Credit 
Market value 
30 years 
2.6 percent 
8 percent initial, decreasing 0.5 percent
per year to an ultimate rate of 5 percent 
4 percent, net of OPEB plan investment
expense, including inflation 
SECTION 3 - REQUIRED SUPPLEMENTARY INFORMATION 
Exhibit 3.3 - Schedule of Employer Contributions 
Valuation date: 
Actuarially determined contributions are determined as of July 1, one year prior to the
end of the fiscal year in which contributions are reported. 
Page 15 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

7/1/2017 7/1/2016 7/1/2015 
Fiscal Year Ending 6/30/2013 6/30/2017 6/30/2016 6/30/2015 
Discount rate 6.0% 4.00% 4.00% 4.00% 
Annual Required Contribution $5,940,527 $6,531,965 $6,010,571 $5,799,917 
Interest on Net OPEB Obligation 1,060,921 880,182 755,496 628,646 
Adjustment to annual required contribution (729,456) (1,272,675) (1,092,388) (908,974) 
Annual OPEB cost $7,730,904 $6,139,472 $5,673,679 $5,519,589 
Employer contributions made ($1,934,575) ($2,506,511) ($2,348,352) 
OPEB Trust contributions (75,000) (50,000) - 
Total Employer contributions 4,426,140 (2,009,575) (2,556,511) (2,348,352) 
Change in Net OPEB Obligation $3,304,764 $4,129,897 $3,117,168 $3,171,237 
Net OPEB Obligation - beginning of year $19,527,869 $22,004,557 $18,887,389 $15,716,152 
Net OPEB Obligation - end of year $22,832,633 $26,134,454 $22,004,557 $18,887,389 
* Entries for fiscal years 2015 and 2016 from Town's audited financial statements. 
Fiscal Year
Ended 
Annual OPEB
Cost 
Percentage of
Annual OPEB
Cost
Contributed 
Net OPEB
Obligation 
6/30/2017 6,139,472 32.7% 26,134,454 
6/30/2016 5,673,679 45.1% 22,004,557 
6/30/2015 5,519,589 42.5% 18,887,389 
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 65,750,806 65,700,690 0.08% 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 
Annual OPEB Cost and Net OPEB Obligation 
Plan History 
Schedule of Funding Progress 
SECTION 4 - EMPLOYER REPORTING AMOUNTS 
Exhibit 4.1 - Accounting Disclosures under GASB 45 
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 6 and Section 5, respectively. 
Page 16 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

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 
SECTION 5 - 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
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 
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. 
The total monthly costs by plan are shown below: 
Non-Medicare Plans - July 1, 2016 
Fallon Senior** 
HP Medicare Enhanced 
Health NE MedPlus 
Tufts Medicare Complement 
Tufts Medicare Preferred** 
UniCare OME w/CIC 
** rates effective January 1, 2016 
Fallon Direct Care 
Medicare Plans - July 1, 2016 
Health New England 
Fallon Select Care 
HP Independence Plan 
HP Primary Choice 
NHP Care (Neighborhood Health Plan) 
UniCare Community Choice 
Tufts Health Plan Spirit 
UniCare Basic with CIC* 
UniCare Basic without CIC 
Tufts Health Plan Navigator 
UniCare PLUS 
* Retiree pays full cost of CIC 
UniCare OME w/o CIC 
Page 17 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 5 - SUMMARY OF PLAN PROVISIONS 
Participant Contributions: 
Continuation of Coverage to
Spouse After Death of
Retiree: 
Life Insurance Benefit: 
Life Insurance Premium: 
Life Insurance Contributions: 
PPACA Excise Tax: The Patient Protection and Affordable Care Act (PPACA) applies a 40%
excise tax, commonly referred to as the "Cadillac Tax", to the cost of plan
benefits in excess of statutory thresholds beginning in 2022. The 2018
thresholds are assumed to be $10,200 for individual and $27,500 for
family coverage, increasing by chained CPI plus one percentage point in
2019 and by chained CPI thereafter. The annual limits are increased by
$1,650 for individual and $3,450 for family coverage for retirees not
eligible for Medicare benefits. 
The total monthly cost is $3.22. 
Retirees contribute $1.61 per month for life insurance. 
Retirees are eligible for a $2,000 life insurance benefit. 
Surviving spouse may continue coverage for lifetime by paying the
required medical premium rates. 
All others contribute 15%. 
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%. 
Page 18 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Valuation Date: 
GASB 74 Disclosure Date: 
Discount Rate (GASB 74): 
Discount Rate (GASB 45): 
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% 
Year 
1 
2 
3 
4 
5 
Ultimate 
6 
SECTION 6 - ACTUARIAL ASSUMPTIONS AND METHODS 
July 1, 2015 
4%, compounded annually, for development of the Annual Required
Contribution (ARC) as of June 30, 2017. 
Investment returns: 
Plan assets (long-term rate of return): 7.5% 
June 30, 2017 
3.58%, compounded annually, for the measurement as of June 30, 2017 and
2.85%, compounded annually, for the measurement as of June 30, 2016. 
Based on the methodology above, the Town has selected a discount rate of
4%. 
Percent of GAP not funded 97% 
Multiplied by short-term rate 3.88% 
Discount rate (6. + 8.) 4.11% 
ARC under fully funded plan 4,358,378 
Pay-as-you-go (PAYG) 1,934,575 
GAP between ARC and PAYG
(1. - 2.) 
2,423,803 
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: 
Employer assets (short-term rate of return): 4% 
Level dollar amount over thirty (30) years on an open amortization period for
partial pre-funding. 
OPEB Trust contribution 75,000 
Percent of GAP funded 3% 
Multiplied by long-term rate 0.23% 
Page 19 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 6 - ACTUARIAL ASSUMPTIONS AND METHODS 
Inflation 2.6% per year, based on the 2017 Social Security Trustees Report. 
Chained 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 $ 
Annual per capita costs for the fiscal year beginning July 1, 2015 are as
follows: 
Annual per capita participant contributions for the fiscal year beginning July 1,
2015 are as follows: 
For current retirees, the actual census information is used. 
70% of eligible retirees will elect to participate. 
70% of eligible retirees will elect to participate. 
Male spouses are assumed to be three years older and female spouses are
assumed to be three years younger than the retired employee. 
50% of employees are assumed to retire with a covered spouse. 
2.35% per year, based on assumed CPI of 2.6% and historical data trends of
chained CPI approximately 0.25% lower than standard CPI. 
Page 20 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 6 - ACTUARIAL ASSUMPTIONS AND METHODS 
Excise Tax: 
Actuarial Cost Method: 
Employee Data: 
Entry Age Normal. The costs of each employee's postemployment benefits
are allocated as a level basis over the earnings of the employee between the
employee's date of hire and the assumed exit ages. Previously, Projected Unit
Credit. 
Employee and retiree data were submitted by the Town. We made
reasonable adjustments for missing or invalid data. 
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 2022, a
40% excise tax is applied on the excess of the plan costs over the thresholds,
which increase annually by chained CPI. 
Page 21 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

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% 
55% of the General employee disabilities are job-related. 
90% of the Public Safety employee disabilities are job-related. 
SECTION 6 - 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, 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,
projected with generational mortality improvement using scale BB. 
Turnover rates for General and Public Safety employees are as follows: 
Group 4 Groups 1 and 2 
Disability rates for General and Public Safety employees are as follows: 
Groups 1 and 2 Group 4 
Page 22 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 6 - 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% 
Retirement rates for General and Public Safety employees are as follows: 
Groups 1 and 2 
Page 23 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

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% 
Disability rates for Teachers are as follows: 
35% of the disabilities are job-related. 
0 5 10+ 
SECTION 6 - 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 
Page 24 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 6 - 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
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

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 Total Average 
Salary Salary 
Under 20 - - - - - - - - - - - - 
20 to 24 32 1 - - - - - - - 33 330,000 10,000 
25 to 29 55 4 2 - - - - - - 61 610,000 10,000 
30 to 34 29 10 5 1 - - - - - 45 450,000 10,000 
35 to 39 23 11 6 3 - - - - - 43 430,000 10,000 
40 to 44 18 6 13 7 - - - - - 44 440,000 10,000 
45 to 49 11 13 7 9 10 4 - - - 54 540,000 10,000 
50 to 54 8 10 14 7 9 9 1 - - 58 580,000 10,000 
55 to 59 11 5 11 10 6 7 4 1 - 55 550,000 10,000 
60 to 64 2 1 3 7 9 8 2 4 - 36 360,000 10,000 
65 to 69 1 1 3 1 - 2 2 - 1 11 110,000 10,000 
70 & up - - - - 1 2 1 - - 4 40,000 10,000 
Total 190 62 64 45 35 32 10 5 1 444 4,440,000 10,000 
Total Salary 1,900,000 620,000 640,000 450,000 350,000 320,000 100,000 50,000 10,000 
Average Salary 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 
43.82 10.23 Average Service: Average Age: 
Years of Service 
TABLE 7.1 - ACTIVE MEMBERS BY AGE and YEARS OF SERVICE AS OF JULY 1, 2015 
SECTION 7 - PLAN MEMBER INFORMATION 
- 
50 
100 
150 
200 
Number 
Years of Service 
Total Members 
- 
10 
20 
30 
40 
50 
60 
70 
Number 
Age 
Total Members 
Page 26 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Non-Medicare Plans 
SECTION 7 - PLAN MEMBER INFORMATION 
TABLE 7.2 - RETIRED MEMBERS, COVERED SPOUSES and SURVIVORS AS OF JULY 1, 2015 
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 
UniCare Basic
without CIC 
UniCare
Community Choice 
UniCare PLUS 
Total 
Under 40 1 0 0 0 0 0 0 0 0 0 0 0 1 
40 to 44 0 0 0 0 0 0 0 0 0 0 0 0 0 
45 to 49 0 0 0 0 0 0 0 0 0 0 0 0 0 
50 to 54 3 0 1 0 0 0 0 0 0 0 0 0 4 
55 to 59 4 0 5 2 0 0 0 0 0 0 0 0 11 
60 to 64 11 0 12 1 0 0 1 0 2 0 0 0 27 
65 to 69 5 1 8 1 0 0 0 0 4 0 0 0 19 
70 to 74 0 0 2 2 0 0 1 0 1 0 0 0 6 
75 to 79 1 0 0 0 0 0 0 0 3 0 0 0 4 
80 to 84 0 0 0 0 0 0 0 0 0 0 0 0 0 
85 to 89 0 0 0 0 0 0 0 0 0 0 0 0 0 
90+ 0 0 0 0 0 0 0 0 0 0 0 0 0 
Total 25 1 28 6 0 0 2 0 10 0 0 0 72 
Covered
Spouses 8 1 10 2 0 0 0 0 5 0 0 0 26 
In addition, there are 15 retiree(s), survivor(s) and covered spouse(s) that are not covered under any medical plan but are covered under a life insurance policy which
the Town contributes to. 
Page 27 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 7 - PLAN MEMBER INFORMATION 
TABLE 7.2 - RETIRED MEMBERS, COVERED SPOUSES and SURVIVORS AS OF JULY 1, 2015 
Medicare Plans: 
Age 
Fallon Senior 
HP Medicare
Enhanced 
#N/A 
Health NE
MedPlus 
#N/A 
Tufts
Medicare
Complement 
#N/A 
Tufts
Medicare
Preferred 
#N/A 
UniCare OME
w/CIC 
#N/A 
UniCare OME
w/o CIC 
Total 
Under 40 0 0 0 0 0 0 0 0 0 0 0 0 0 
40 to 44 0 0 0 0 0 0 0 0 0 0 0 0 0 
45 to 49 0 0 0 0 0 0 0 0 0 0 0 0 0 
50 to 54 0 0 0 0 0 0 0 0 0 0 0 0 0 
55 to 59 1 0 0 0 0 0 0 0 0 0 0 0 1 
60 to 64 8 0 0 0 0 1 0 0 0 2 0 0 11 
65 to 69 25 15 0 0 0 1 0 1 0 11 0 0 53 
70 to 74 20 5 0 3 0 0 0 0 0 19 0 0 47 
75 to 79 26 0 0 0 0 1 0 0 0 8 0 0 35 
80 to 84 13 0 0 0 0 0 0 1 0 6 0 0 20 
85 to 89 9 0 0 0 0 0 0 0 0 2 0 0 11 
90+ 6 0 0 0 0 0 0 0 0 5 0 0 11 
Total 108 20 0 3 0 3 0 2 0 53 0 0 189 
Covered
Spouses 32 18 0 1 0 0 0 1 0 16 0 68 
Page 28 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Actuarial Valuation Date – The date as of which an actuarial valuation is performed. This date may be up to 24
months prior to the measurement date and up to 30 months prior to the employer's reporting date. 
Entry Age Normal Actuarial Cost Method – A method under which the actuarial present value of the projected
benefits of each individual in an actuarial valuation is allocated on a level basis over the earnings or service of
the individual between entry age and assumed exit age. 
Fiduciary Net Position – The fair market value of assets as of the measurement date. 
Deferred Inflow of Resources – Acquisition of resources by a governmental entity that is applicable to future
reporting periods. Under GASB 75, deferred inflows of resources are made up of experience gains, assumption
changes reducing the Total OPEB Liability and investment gains that are recognized in future reporting periods. 
Deferred Outflow of Resources – Consumption of resources by a governmental entity that is applicable to future
reporting periods. Under GASB 75, deferred outflows of resources are made up of experience losses, assumption
changes increasing the Total OPEB Liability and investment losses that are recognized in future reporting periods. 
Funded Ratio – The Actuarial Value of Assets expressed as a percentage of the Actuarial Accrued Liability. 
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. 
SECTION 8 - GLOSSARY OF TERMS 
Actuarially Determined Contribution – A target or recommended contribution to a defined benefit OPEB plan for
the reporting period, determined in conformity with Actuarial Standards of Practice based on the most recent
measurement available when the contribution for the reporting period was adopted. 
Actuarial Present Value of Projected Benefit Payments – The dollar value on the valuation date of all benefits
expected to be paid to current members based upon the Actuarial Assumptions and the terms of the Plan. 
Actuarial Assumptions – Assumptions as to the occurrence of future events affecting OPEB costs, such as
mortality, withdrawal, disability and retirement; changes in compensation and OPEB 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 Cost Method (or Funding Method) – A procedure for allocating the Actuarial Present Value of projected
benefit payments to the current year (Service Cost) and the past (Total OPEB Liability). 
Actuarial Gain or Loss (or Experience Gain or Loss) – A measure of the difference between actual experience
and that expected based upon the set of Actuarial Assumptions during the period between the valuation date and
the most recent immediately preceding valuation date. 
Page 29 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

SECTION 8 - GLOSSARY OF TERMS 
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. 
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. 
Substantive Plan – The terms of an OPEB plan as understood by the employer and plan members. 
OPEB – Other Postemployment Benefits including medical, dental, vision, hearing and life insurance benefits. 
Unfunded Actuarial Accrued Liability – The excess of the Actuarial Accrued Liability over the Actuarial Value of
Assets. 
Total OPEB Liability – The portion of the actuarial present value of projected benefit amounts that is attributed to
past periods of employee service. 
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. 
Service Cost – The portion of the actuarial present value of projected benefit amounts that is attributed to a
valuation year. 
Reporting Date – The last day of the Plan or employer's fiscal year. 
Net OPEB Liability – The liability of the employer for benefits provided through an OPEB plan. It is calculated as
the Total OPEB Liability less the Fiduciary Net Position. 
Measurement Date – The date as of which the Total OPEB Liability and Fiduciary Net Position are measured. 
GASB – Governmental Accounting Standards Board. 
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. 
Page 30 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Unit Town School Water Sewer Recreation Rink Harbor Total 
Town School Water Sewer Recreation Rink Harbor 
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 Spouses 30 64 0 0 0 0 0 94 
Actuarial Accrued Liability - July 1, 2016 26,809,488 46,691,843 451,137 859,449 305,478 159,688 5,177 75,282,260 
Actuarial Value of Plan Assets - July 1, 2016 17,888 31,154 301 573 206 105 5 50,232 
Unfunded Actuarial Accrued Liability 26,791,600 46,660,689 450,836 858,876 305,272 159,583 5,172 75,232,028 
Annual Required Contribution (ARC) - June 30, 2017 
Normal Cost 553,853 1,462,573 23,363 31,032 8,518 15,357 1,834 2,096,530 
Amortization of UAL 1,490,078 2,595,144 25,074 47,768 16,978 8,876 288 4,184,206 
Interest 81,757 162,309 1,937 3,152 1,020 969 85 251,229 
Total 2,125,688 4,220,026 50,374 81,952 26,516 25,202 2,207 6,531,965 
Annual OPEB Cost (AOC) - June 30, 2017 
Annual Required Contribution 2,125,688 4,220,026 50,374 81,952 26,516 25,202 2,207 6,531,965 
Interest on Net OPEB Obligation 313,450 545,909 5,275 10,048 3,572 1,867 61 880,182 
Adjustment to annual required contribution (453,225) (789,342) (7,627) (14,529) (5,164) (2,700) (88) (1,272,675) 
Annual OPEB cost 1,985,913 3,976,593 48,022 77,471 24,924 24,369 2,180 6,139,472 
Employer contributions made (751,243) (1,172,085) (2,604) (4,497) (1,427) (2,718) (1) (1,934,575) 
OPEB Trust contributions (26,708) (46,513) (450) (855) (308) (158) (8) (75,000) 
Employer contributions (777,951) (1,218,598) (3,054) (5,352) (1,735) (2,876) (9) (2,009,575) 
Change in Net OPEB Obligation 1,207,962 2,757,995 44,968 72,119 23,189 21,493 2,171 4,129,897 
Net OPEB Obligation - beginning of year 7,836,254 13,647,748 131,865 251,212 89,289 46,676 1,513 22,004,557 
Net OPEB Obligation - end of year 9,044,216 16,405,743 176,833 323,331 112,478 68,169 3,684 26,134,454 
SECTION 9 - RESULTS BY SUBGROUP 
Page 31 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Unit Town School Water Sewer Recreation Rink Harbor Total 
Town School Water Sewer Recreation Rink Harbor 
SECTION 9 - RESULTS BY SUBGROUP 
Beginning Net OPEB Liability - June 30, 2016 
Total OPEB Liability 28,914,113 54,281,088 508,737 936,674 322,216 153,870 0 85,116,698 
Fiduciary Net Position 17,888 31,154 301 573 206 105 5 50,232 
Net OPEB Liability 28,896,225 54,249,934 508,436 936,101 322,010 153,765 (5) 85,066,466 
Ending Net OPEB Liability - June 30, 2017 
Total OPEB Liability 26,506,232 50,080,257 524,851 904,244 298,862 192,298 13,138 78,519,883 
Fiduciary Net Position 59,338 112,113 1,175 2,024 669 430 29 175,778 
Net OPEB Liability 26,446,894 49,968,144 523,676 902,220 298,193 191,868 13,109 78,344,105 
Sensitivity of the Net OPEB Liability 
to Changes in the Discount Rate 
Current Discount Rate: 3.58% 26,446,894 49,968,144 523,676 902,220 298,193 191,868 13,109 78,344,105 
1% Decrease in the Discount Rate: 2.58% 31,817,435 60,115,119 630,019 1,085,433 358,746 230,831 15,771 94,253,354 
1%Increase in the Discount Rate: 4.58% 22,308,908 42,149,930 441,740 761,055 251,536 161,848 11,058 66,086,075 
Sensitivity of the Net OPEB Liability 
to Changes in the Healthcare Cost Trend Rates 
Current Trend Rates 26,446,894 49,968,144 523,676 902,220 298,193 191,868 13,109 78,344,105 
1% Decrease in Trend Rates 21,592,212 40,795,821 427,549 736,605 243,455 156,648 10,703 63,962,993 
1% Increase in Trend Rates 32,968,266 62,289,472 652,806 1,124,693 371,722 239,180 16,342 97,662,481 
Page 32 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017

Projected cash flows into and out of the OPEB plan are assumed to be contributions to the OPEB plan, benefit
payments, OPEB plan administrative expenses and OPEB plan investment earnings. These projected cash flows
are used to project the OPEB plan's fiduciary net position at the beginning of each period. The OPEB plan's
projected fiduciary net position at the beginning of each period is compared to the amount of benefit payments
projected to occur in that period. 
APPENDIX A - CALCULATION OF SINGLE DISCOUNT RATE 
Under GASB 74, a series of projections and calculations are used to determine the discount rate for the purpose
of the measurement of the Total OPEB Liability. The discount rate is the single rate that reflects (1) the long-term
expected rate of return on OPEB plan investments that are expected to be used to finance the payment of
benefits, to the extent that the OPEB plan's fiduciary net position is projected to be sufficient to make projected
benefit payments and OPEB plan assets are expected to be invested using a strategy to achieve that return, and
(2) a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher, to the extent that the conditions for use of the long-term expected rate of return are not met. 
It is assumed that the OPEB plan's fiduciary net position is expected to always be invested using a strategy to
achieve the long-term expected rate of return on OPEB plan investments. 
The benefit payments that are projected to occur in a period are discounted using the long-term expected rate of
return on OPEB plan investments if the amount of the OPEB plan's beginning fiduciary net position is projected to
be sufficient to make the benefit payments in that period. In periods in which benefit payments are projected to
be greater than the amount of the OPEB plan's fiduciary net position, they are discounted using a municipal bond
rate as required by GASB 74. 
For purposes of this valuation, the long-term expected rate of return on OPEB plan investments is 7.5%; the
municipal bond rate is 3.58%, based on the Bond Buyer 20-Bond GO Index published on June 29, 2017. The
OPEB plan's fiduciary net position was projected to be insufficient to make all projected benefit payments of
current plan members. Therefore, the 3.58% municipal bond rate was applied to all periods to determine the
total OPEB liability. 
Town of Winthrop Postemployment Benefits Other Than Pensions
Financial Reporting and Disclosures Under GASB 45 and GASB 74 as of June 30, 2017