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13 Glossary Actuarial assumptions. Assumptions as to the occurrence of future events affecting retirement costs, such as: mortality, withdrawal, disablement and retirement, changes in compensation and investment earnings. Actuarial accrued liability. That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of benefits and expenses, which is not provided for by future Normal Costs. Actuarial cost method or funding method. A procedure for determining the Actuarial Present Value of benefits and expenses and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a Normal Cost and an Actuarial Accrued Liability. Actuarial gain (loss) or experience gain (loss). A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two Actuarial Valuation dates, as determined in accordance with a particular Actuarial Cost Method. Actuarial present value of total projected benefits. Total projected benefits include all benefits estimated to be payable to plan members (retirees and beneficiaries, terminated employees entitled to benefits but not yet receiving them, and current active members) as a result of their service through the valuation date and their expected future service. The actuarial present value of total projected benefits as of the valuation date is the present value of the cost to finance benefits payable in the future, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment. Actuarial valuation. The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a benefit plan. Actuarial value of assets or valuation assets. The value of cash, investments and other property belonging to a benefit plan, as used by the actuary for the purpose of an Actuarial Valuation. Amortization payment. That portion of the benefit plan contribution which is designed to amortize the Unfunded Actuarial Accrued Liability. Annual required contributions of the employer (ARC). The employer's periodic required contributions to a defined benefit OPEB plan, calculated in accordance with the parameters. Defined benefit OPEB plan. An OPEB plan having terms that specify the benefits to be provided at or after separation from employment. The benefits may be specified in dollars (for example, a flat dollar payment or an amount based on one or more factors such as age, years of service, City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008