GASB OPEB Unfunded Liability – 2004 to 2005: Why Did it Increase?
UPDATED CALCULATION OF ACTUARIAL ACCRUED LIABILITY RESULTED IN INCREASE FROM $4.9 BILLION TO $10 BILLION
One year of interest on liability, additional benefits, benefits paid and actuarial experience
Increase life expectancy and change retirement and turnover assumptions to better reflect LAUSD experience
Health cost increases
Change actuarial cost method to method that creates level annual costs
Discount rate/investment return assumption change decreased from 6.5% to 5% to more closely reflect expected investment returns on LAUSD investments