Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 60 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 60 - established and may be amended by ordinance of the Seattle City Council and as provided in Seattle Municipal Code 4.50.020. The City’s expected contribution for employer-paid benefits was $1.3 million, $1.1 million, and $1.0 million in 2016, 2015, and 2014, respectively. The Department’s portion of the expected contribution was $0.2 million, $0.2 million, and $0.2 million in years 2016 and 2015, and 2014, respectively. The City recorded an expense and liability for OPEB of $2.6 million in 2016 and $2.6 million in 2015. The Department recorded a reduction to expense and a decrease in liability for OPEB of $0.1M in 2016, and an expense and increase in liability for OPEB of $0.5M in 2015. The department reported an OPEB liability of $7.9M in 2016 and $8.0M in 2015. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Based on the latest biennial actuarial valuation date the significant methods and assumptions are as follows: