Appendix OHealth Reimbursement Plan Actuarial Assumptions and Funding
|Valuation Date:||April 1|
|Value of Assets:||Market value|
|Mortality Assumptions:||Mortality based on Appendix N mortality table.|
|Players Included in Valuation:||Active Players with two or more Credited Seasons and former Players with nominal account balances.|
|Player’s Last Season:||Future seasons based on Appendix N withdrawal table.|
|Date When Benefits Will|
Begin to be Paid:
|Each player with a nominal balance is assumed to begin distributions five years after his expected last Credited Season.|
|Annual Distributions:||Annual distributions will equal the estimated cost of a year’s coverage for a former player under the Player Group Insurance Plan for the years in which a reimbursement is expected to be made. Annual distributions for reimbursement eligible players will be based on historical experience.|
|Discount Rate:||60 basis points greater than the average yield of money market funds as published in The Wall Street Journal on each April 1 nearest the Valuation Date.|
|Expenses:||The actual expenses for the prior year.|
|Each year, a valuation will be prepared based on the value of nominal balances as of April 1 (“past service liability”), and the expected value of nominal balances to be earned during the forthcoming Season and the estimated expenses for the year (“normal cost”). The value of plan assets as of April 1 shall be subtracted from the past service liability to determine the unfunded past service liability.|
A new liability base will be established equal to the Plan’s unfunded past service liability less the unamortized amount of the bases for the past service liability as of the current valuation date.
Notwithstanding the above, the change in past service liability attributable to a plan amendment adopted during the 2020 Plan Year will be amortized over eleven years.
Each year, a contribution will be made equal to the sum of (1) the normal cost for the year, (2) the total amortization payments of outstanding past service liability bases, (3) the outstanding amortization payment attributable to plan amendments adopted during the 2020 Plan Year, and (4) interest to the end of the year.
The contribution, however, will be reduced, but will not be less the normal cost, to the extent the expected assets exceed the Plan’s liability. If the previous sentence applies, all bases will be considered fully amortized. The contribution, will be further reduced, but will not be less than zero, to the extent the expected assets exceed the expected nominal account balances.
Deferral of Contributions: At its discretion, the League may defer some or all of the contributions for any Plan Year during the term of this Agreement, with interest at the rate specified in this Appendix, with such contribution (including interest) to be made and counted as a Player Cost in a future Plan Year occurring during the term of this Agreement and that is agreed to by the Parties.