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This publication is intended for informational/educational purposes only and should not be used to replace the advice of a qualified professional.

1 This publication is intended for informational/educational purposes only and should not be used to replace the advice of a qualified professional. It is not intended to be a substitute for professional advice, whether actuarial, accounting, legal, or otherwise. While efforts are made to verify the information presented, PERA does not guarantee the accuracy or completeness of the information. PERA owns the rights to this publication and it may not be reproduced, republished, or re disseminated in any manner without the prior written consent of PERA. PERA cannot be held liable for any information provided in this publication. This publication is intended to help you understand how to take your PERA Affiliated employer information from the Health Care Trust Fund's Schedule of Employer Allocations, Schedule of Collective OPEB Amounts, and related notes and create journal entries to record the OPEB activity for your entity. The PERA Affiliated Employer shown in this example does not represent an actual employer, and it assumes that there is only one PERA Affiliated Employer Number for this financial reporting entity and that no further allocation is required. If you have any questions, please contact the Colorado PERA GASB Work Team at GASBMail@copera.org. Page 1 of 6

2 PERA Affiliated Employer and Health Care Trust Fund (HCTF) Information (2017) ITEM A OPEB Plan HCTF B Financial Reporting Entity (PERA Affiliated Employer Number) XXX C D E F I Financial Reporting Entity Year End OPEB Plan Measurement Date Collective Net OPEB Liability as of 12/31/2017 Collective Deferred Outflow of Resources Excluding Employer Specific Amounts as of 12/31/2017 Collective Deferred Inflow of Resources Excluding Employer Specific Amounts as of 12/31/2017 G Collective OPEB Expense Employer Allocation Percentage 6/30/ /31/2017 $1,299,600,000 $6,146,000 $21,742,000 $101,835,000 H 2016 Employer Allocation Percentage % J Average Expected Remaining Service Life for the OPEB Plan for % K Employer Contributions for 2017 (Jan thru June) $95,401 L Employer Contributions for 2017 (July thru Dec) $95, M N O P R Employer Contributions subsequent to the OPEB Plan's Measurement Date of 12/31/2017 (Jan thru June 2018) Total Collective Actual Contributions recognized by the OPEB Plan for 2017 Total Employer Disaffiliation Payment recognized by the OPEB Plan for 2017 Total Collective Annualized Contributions used to determine Employer Proportionate Share Collective Net OPEB Liability as of 12/31/2016 $97,000 $83,077,000 $96,000 $82,808,000 $1,296,534,000 Page 2 of 6

3 Employer Level Deferral Amortization Schedules (PERA Affiliated Employer XXX) Change in the employer's allocation percentage Deferred Outflow Deferred Inflow Amortization Period 12/31/ % 24, (Financial Reporting Entity) Amortization of the 2017 Deferral 2 Total Amortization 2 6/30/2018 3,942 3,942 6/30/2019 3,942 3,942 6/30/2020 3,942 3,942 6/30/2021 3,942 3,942 6/30/2022 3,942 3,942 6/30/2023 3,942 3,942 6/30/ Total $24,009 $24,009 1 Calculation: R x (I H) 2 Positive amounts increase OPEB expense and negative amounts decrease OPEB expense. (PERA Affiliated Employer XXX) Difference between actual contributions and proportionate share of total contributions Deferred Outflow Deferred Inflow Amortization Period 12/31/2017 (621) (Financial Reporting Entity) Amortization of the 2017 Deferral 2 Total Amortization 2 6/30/2018 (102) (102) 6/30/2019 (102) (102) 6/30/2020 (102) (102) 6/30/2021 (102) (102) 6/30/2022 (102) (102) 6/30/2023 (102) (102) 6/30/2024 (9) (9) Total ($621) ($621) 1 Calculation: (K + L) (I x N) 2 Positive amounts increase OPEB expense and negative amounts decrease OPEB expense. Note: Calculations reference the items shown on page 2 Page 3 of 6

4 Sample Journal Entries for the first year of implementation of GASB Statement No. 75 J/E # Description and Calculation DR CR (1) Fund Balance (Equity) 2,970,664 Net OPEB Liability 2,970,664 To record adjustment to opening balance for the Financial Reporting Entity's proportionate share of the Collective Net OPEB Liability Calculation: (R x H) (2) Deferred outflows of resources (dr. balance increases asset side of balance sheet) 95,401 Fund Balance (Equity) 95,401 To record adjustment to opening balance for the contributions made subsequent to the OPEB plan's prior year measurement date of 12/31/2016 Calculation: See Item "K" Information is sourced directly from the employer's payroll submissions for the period of January 2017 through June 2017 (3) Deferred outflows of resources (dr. balance increases asset side of balance sheet) 14,196 Net OPEB Liability 14,196 To record Financial Reporting Entity's proportionate share of Collective Deferred Outflows of Resources Calculation: (E x I) (4) Net OPEB Liability 50,219 Deferred inflows of resources (cr. balance increases liability side of the balance sheet) 50,219 To record Financial Reporting Entity's proportionate share of Collective Deferred Inflows of Resources Calculation: (F x I) (5) OPEB Expense 235,214 Net OPEB Liability 235,214 To record Financial Reporting Entity's proportionate share of Collective OPEB Expense Calculation: (G x I) (6) Deferred outflows of resources (dr. balance increases asset side of balance sheet) 24,009 Net OPEB Liability 24,009 To record Financial Reporting Entity's employer level deferral for change in employer allocation percentage from 2016 through 2017 (7) OPEB Expense 3,942 Deferred outflows of resources (dr. balance increases asset side of balance sheet) 3,942 To record Financial Reporting Entity's first year amortization of employer level deferral for change in employer allocation percentage from 2016 through 2017 (8) Net OPEB Liability 621 Deferred inflows of resources (cr. balance increases liability side of the balance sheet) 621 To record Financial Reporting Entity's employer level deferral for the difference between actual contributions and a proportionate share of total contributions Note: Calculations reference the items shown on pages 2 3 Page 4 of 6

5 Sample Journal Entries for the first year of implementation of GASB Statement No. 75 J/E # Description and Calculation DR CR (9) Deferred inflows of resources (cr. balance increases liability side of the balance sheet) 102 OPEB Expense 102 To record Financial Reporting Entity's first year amortization of employer level deferral for the difference between actual contributions and a proportionate share of total contributions (10) Net OPEB Liability 222 OPEB Expense 222 To record Financial Reporting Entity's proportionate share of disaffiliation payment received in Calculation: (O x I) (11) Net OPEB Liability 95,401 Deferred outflows of resources (dr. balance increases asset side of balance sheet) 95,401 To record the Financial Reporting Entity's employer contributions for the period of January 2017 through June 2017 as a reduction in the financial reporting entity's proportionate share of the collective net OPEB liability Calculation: See Item "K" Information is sourced directly from the employer's payroll submissions for the period of January 2017 through June 2017 (12) Net OPEB Liability 95,865 Cash 1 95,865 To record the Financial Reporting Entity's employer contributions for the period of July 2017 through December 2017 as a reduction in the Financial Reporting Entity's proportionate share of the collective net OPEB liability Calculation: See Item "L" Information is sourced directly from the employer's payroll submissions for the period of July 2017 through December 2017 (13) Deferred outflows of resources (dr. balance increases asset side of balance sheet) 97,000 Cash 1 97,000 To record Financial Reporting Entity's employer contributions subsequent to the pension plan's Measurement Date of 12/31/2017 Calculation: See Item "M" Information is sourced directly from the employer's payroll submissions for the period of January 2018 through June The cash account is being credited for illustrative purposes only. It is possible that PERA affiliated employer has already recognized this activity in their general ledger according to their accounting policies that existed before the implementation of GASB No. 75 and that an adjusting entry is required. For more information on the disaffiliation payment, see Note 1 on page 119 in PERA's 2017 Comprehensive Annual Financial Report. For purposes of this educational publication it is assumed this disaffiliation payment is an employer specific liability as referenced in GASB 75, paragraph 67. Note: Calculations reference the items shown on pages 2 3 Page 5 of 6

T Account Illustration Net OPEB Liability 2,970,664 (1) Note: The ending balance in the net OPEB liability account can be calculated two ways: (4) (8) (10) (11) (12) 50,219 14,196 621 235,214 222

6 T Account Illustration Net OPEB Liability 2,970,664 (1) Note: The ending balance in the net OPEB liability account can be calculated two ways: (4) (8) (10) (11) (12) 50,219 14, , ,009 95,401 95,865 (3) (5) (6) (1) 2,970, , , ,009 50, ,401 95,865 = 3,001,755 (2) 1,299,600,000 * = 3,001,755 3,001,755 Proportionate share of collective Proportionate share of collective deferred outflows of resources deferred inflows of resources Proportionate share of collective related to OPEB related to OPEB OPEB expense ,196 50,219 (5) 235,214 (3) (4) 14,196 50, ,214 Employer level deferred outflows Employer level deferred inflows OPEB expense amortization of of resources related to OPEB of resources related to OPEB employer level deferrals (2) (6) (13) 95,401 3,942 (7) (9) (8) (7) 3, ,009 95,401 (11) , , ,618 (9) (10) Cash Fund Balance (Equity) 0 2,970,664 95,401 (1) (2) 95,865 97,000 (12) (13) 192,865 2,875,263 Page 6 of 6

For Educational Purposes Only

For Educational Purposes Only This publication is intended for informational/educational purposes only and should not be used to replace the advice of a qualified professional. It is not intended to be a substitute for professional