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City of Redwood City 7.1.A. - Page 89 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2014 <br /> NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br /> The Schedule of Funding Progress, presented as Required Supplementary Information following the <br /> notes to the financial statements, presents multiyear trend information about whether the actuarial <br /> value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for <br /> benefits. <br /> B. Post Employment Benefits <br /> Redwood City: <br /> The City administers a single - employer defined benefit post employment healthcare plan. Permanent <br /> employees who retire under the City's retirement plan (CaIPERS) are, pursuant to their respective <br /> collective bargaining agreements, eligible to have their medical insurance premiums reimbursed by the <br /> City up to the Kaiser family premium rate. Medical insurance premiums for spouses and other <br /> dependents generally are not paid by the City. In the case of public safety disability retirement, the City <br /> provides medical insurance for dependents. Currently there are 367 retirees receiving this benefit. <br /> The City is not required by law or contractual agreement to provide funding for retiree health costs <br /> other than the pay -as- you -go amount necessary to provide current benefits to retirees. The City's <br /> retiree health plan is being managed through the California Employer's Retiree Benefits Trust (CERBT), <br /> an irrevocable trust fund that allows public employers to prefund the future cost of their retiree health <br /> insurance benefits and other post employment benefits for their covered employees or retirees. <br /> The CERBT's administrator, CaIPERS, issues a publicly available financial report consisting of financial <br /> statements and required supplementary information for CERBT in aggregate. The report may be <br /> obtained by writing to CaIPERS, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. During FY <br /> 2013 -14, the City contributed $4,890,000, or 100 %, of the actuarially required contributions to the <br /> retiree health plan. <br /> Total current payroll for all covered employees for the fiscal year ended June 30, 2014 was <br /> $48,399,901. <br /> The City's annual other post employment benefit (OPEB) cost (expense) is calculated based on the <br /> annual required contribution (ARC) of the employer, an amount actuarially determined in accordance <br /> with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an <br /> ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial <br /> liabilities (or funding excess) over a period not to exceed thirty years. <br /> 61 <br />