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14 and compensation), or as a type or level of coverage (for example, prescription drugs or a percentage of health care insurance premiums). Employer's contributions. Contributions made in relation to the annual required contributions of the employer (ARC). An employer has made a contribution in relation to the ARC if the employer has (a) made payments of benefits directly to or on behalf of a retiree or beneficiary, (b) made premium payments to an insured or (c) irrevocably transferred assets to a trust, or equivalent arrangement, in which plan assets are dedicated to providing benefits to retirees and the beneficiaries in accordance with the terms of the plan and are legally protected from creditors of the employer(s) or plan administrator. Entry age actuarial cost method. A method under which the Actuarial Present Value of the Projected Benefits of each individual included in an Actuarial Valuation is allocated on a level basis over the earnings or service of the individual between entry age and assumed exit age(s). The portion of this Actuarial Present Value allocated to a valuation year is called the Normal Cost. The portion of this Actuarial Present Value not provided for at a valuation date by the Actuarial Present Value of future Normal Costs is called the Actuarial Accrued Liability. Funded ratio. The actuarial value of assets expressed as a percentage of the Actuarial Accrued Liability. Healthcare cost trend rate. The rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of health care services, plan design, and technological developments. Investment return assumption (discount rate). The rate used to adjust a series of future payments to reflect the time value of money. Medicare Modernization Act (MMA). The federal law which created Medicare Part D. Net OPEB obligation. The cumulative difference since the effective date of this statement between annual OPEB cost and the employer's contributions to the plan including the OPEB liability (asset) at transition, if any, and excluding (a) short -term differences and (b) unpaid contributions that have been converted to OPEB- related debt. Normal cost. That portion of the Actuarial Present Value of benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method. Other postemployment benefits (OPEB). Postemployment benefits other than retirement benefits. Other postemployment benefits include postemployment healthcare benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a retirement plan, excluding benefits defined as termination offers and benefits. City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008