b"Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 11.LINE OF DUTY ACT (LODA) PROGRAM (continued) Long-Term Expected Rate of Return The long-term expected rate of return on LODA OPEB Programs investments was set at 3.97% for this valuation. Since LODA is funded on a current-disbursement basis, it is not able to use the VRS Pooled Investments 6.75% assumption. Instead, the assumed annual rate of return of 3.97% was used since it approximates the risk-free rate of return. This Single Equivalent Interest Rate (SEIR) is the applicable municipal bond index rate based on the Fidelity Fixed Income General Obligation 20-year Municipal Bond Index published monthly by the Board of Governors of the Federal Reserve System as of the measurement date of June 30, 2024. Discount Rate The discount rate used to measure the total LODA OPEB liability was 3.97% and 3.86% at 2024 and 2023, respectively. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made per the VRS Statutes and that they will be made in accordance with the VRS funding policy and at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ended June 30, 2024, the rate contributed by participating employers to the LODA OPEB Program will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly.Sensitivity of the Commissions Proportionate Share of the Net LODA OPEB Liability to Changes in the Discount Rate The following presents the Commissions proportionate share of the net LODA OPEB liability using the 2024 discount rate of 3.97%, as well as what the Commissions proportionate share of the net LODA OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.97%) or one percentage point higher (4.97%) than the current rate. The 2023 share is presented using the discount rate of 3.86%, as well as the one percentage point decrease (2.86%) and one percentage point increase of 4.86%. Discount Rate1% Decrease Current 1% IncreaseCommission's proportionateshare of the LODA 2024 $ 840,810 $ 758,459 $ 687,645Net OPEB Liability 2023 900,715 803,322720,929Sensitivity of the Commissions Proportionate Share of the Net LODA OPEB Liability to Changes in the Health Care Trend Rate BecausetheLineofDutyActProgramcontainsaprovisionforthepaymentofhealthinsurance premiums, the liabilities are also impacted by the health care trend rates. The following presents the Commissions proportionate share of the net LODA OPEB liability using the health care trend rate of 7.25% decreasing to 4.25%, as well as what the Commissions proportionate share of the net LODA OPEB liability would be if it were calculated using a health care trend rate that is one percentage point lower (6.25% decreasing to 3.25%) or one percentage point higher (8.25% decreasing to 5.25%) than the current rate.72"