CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) B. Total OPEB Liability (Continued) Change in Total OPEB Liability Total OPEB Liability Balance at July 1, 2023 (Measurement Date) $ 1,856,547 Changes Recognized for the Measurement Period: Service Cost 140,189 Interest on the Total OPEB Liability 71,671 Changes of Assumptions (77,706) Benefit Payments, Including Refunds of Employee (66,326) Net Changes During July 1, 2023 to June 30, 2024 67,828 Balance at June 30, 2024 (Measurement Date) $ 1,924,375 Sensitivity of the Total OPEB Liability to Change in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (2.93%) or 1-percentage- point higher (4.93%) than the current discount rate: 1% Decrease to Current Discount 1% Increase to Discount Rate Discount Rate Discount Rate (2.93%) (3.93%) (4.93%) Plan's Total OPEB Liability $ 2,225,101 $ 1,924,375 $ 1,681,448 Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (Non-Medicare – 5.50% to 2.75% and Medicare – 4.65% to 2.75%) or 1-percentage-point higher (Non-Medicare – 7.50% to 4.75% and Medicare - 6.65% to 4.75%) than the current healthcare cost trend rates: 1% Decrease to 1% Increase to Current Trend Current Trend Current Trend Plan's Total OPEB Liability $ 1,608,743 $ 1,924,375 $ 2,333,182 (70)