Economic Assumptions Clause Samples

Economic Assumptions. 2.3.1. Budgeted costs of the Project as well as the Parties' respective economic obligations are set out in the Cost Plan. Each Party is responsible for their own part of the Project financing. Accordingly, the Parties shall not be jointly and severally liable towards each other. 2.3.2. The Parties' pledged cash contributions shall, where applicable, be paid to the Project Coordinator semi-annually, no later than 31 March and 30 September respectively. A prior specified requisition to the Project Coordinator is required in order for such cash contribution to be allocated to a Party. 2.3.3. The Parties' efforts in the Project will be valued at actual costs according to the principles set out in the Grant Decision.

Economic Assumptions. The discount rate of 6.95% was selected by M-NCPPC. The medical trend assumption was developed using the Society of Actuaries (SOA) Long-Run Medical Cost Trend Model baseline assumptions. The SOA Model was released in October 2010 and updated in August 2017. The following assumptions were used as input variables into this model. These input assumptions were selected to closely align the M-NCPPC OPEB trend assumption with that used by ▇▇▇▇▇▇▇▇▇▇ County, and our all well within the acceptable range of economic assumptions allowed by the model: Rate of Inflation 2.2% Rate of Growth in Real Income / GDP per capita 1.0% Extra Trend due to Technology and other factors 1.2% Health Share of GDP Resistance Point 25.0% Year for Limiting Cost Growth to GDP Growth 2075 The SOA Long-Run Medical Cost Trend Model is based on an econometric analysis of historical U.S. medical expenditures and the judgments of experts in the field. The long-run baseline projection, tolerance ranges and input variables have been developed under the guidance of an SOA Project Oversight Group. Future medical care cost increase rates are unpredictable and could be volatile. They will depend upon the economy, future health care delivery systems and emerging technologies. The trend rate selected is based on an economic model developed by a health care economist for the Society of Actuaries. Future medical trend increases could vary significantly from the model. Model inputs will be updated periodically based on the best estimate of the economy at that time. Small changes in the model inputs can results in actuarial losses or gains of 5 to 15 percent of liabilities. Payroll is assumed to increase at 2.50 percent per annum. This assumption is used to determine the level percentage of payroll amortization factor.