Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the actuarially determined contribution rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the net position liability to changes in the discount rate
The following presents the net pension liability, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage- point lower (6.15%) or 1-percentage-point higher (8.15%) than the current rate:
December 31, 2022, Measurement Date
Current Discount (7.15%)
1% Decrease
1% Increase
(6.15%)
(8.15%)
The District's proportionate share of the net pension liability…………………$ 40,455,983 $ 32,314,927$ 25,463,955
Changes of Assumptions
• None.
Changes in Plan Provisions
• Effective December 31, 2023, pursuant to chapter 269 of the Acts of 2022, the Board approved a onetime increase in the COLA from 3% to 5% effective July 1, 2022.
NOTE 12 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description
The District administers a single-employer defined benefit healthcare plan (Plan). The Plan provides lifetime healthcare insurance for eligible retirees and their spouses through the District’s group health insurance plan, which covers both active and retired members. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the District and the unions representing District employees and are renegotiated each bargaining period. The Plan does not issue a publicly available financial report.
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