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City of Redwood City 6.1.E. - Page 96 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2015 <br /> NOTE 9—EMPLOYEE BENEFITS(CONTINUED) <br /> For the fiscal year ended June 30, 2015, the Port's annual OPEB cost was $35,737; of this amount <br /> $5,631 was expensed and funded by reimbursements to current retirees and the remaining $30,106 net <br /> OPEB obligation was expensed and recorded as a liability. Combined with the $172,132 net OPEB <br /> obligation as of June 30, 2014,the total net OPEB obligation as of June 30, 2015 was $202,238. <br /> The annual required contribution was determined as part of the July 1, 2014 actuarial valuation using <br /> the Entry Age Actuarial Cost Method and assumptions consistent with the CaIPERS OPEB Assumptions <br /> Model. The actuarial assumptions included: (a) salary increases of 3.25% per year, (b) a discount rate of <br /> 7.61%, (c) 100% of eligible employees assumed to elect coverage upon retirement and to remain <br /> covered for life, (d) retirement, withdrawal, and mortality rates based on CaIPERS Assumption model <br /> for the classification "public agency miscellaneous 2.7% at 55", and (e) medical premium inflation rates <br /> ranging from 9%to 6% over time. The actuarial present value of future benefits was calculated for each <br /> individual using the economic assumptions and specific member data, then aggregated. The <br /> amortization component of the unfunded actuarial accrued liability was based on a 30 year <br /> amortization period. <br /> The following table shows the components of the Port's annual OPEB costs for the year, the amount <br /> actually contributed to the plan, and changes in the Port's net OPEB obligation: <br /> Annual OPEB Costs and Net OPEB Obligation <br /> Normal cost 8,161 <br /> Amortization of unfunded actuarial accrued liability 25,280 <br /> Annual required contribution 33,441 <br /> Interest on beginning net OPEB obligation 13,099 <br /> Annual required contribution adjustment (10,803) <br /> Annual OPEB expense 35,737 <br /> Actual current year employer payment (5,631) <br /> Increase in OPEB obligation 30,106 <br /> Net OPEB obligation at June 30, 2014 172,132 <br /> Net OPEB obligation at June 30,2015 202,238 <br /> OPEB Unfunded Actuarial Accrued Liabilities <br /> Actuarial accrued liabilities 373,632 <br /> Actuarial value of plan assets <br /> Unfunded actuarial accrued liabilities(UAAL) 373,632 <br /> Funded ratio 0% <br /> Covered payroll 655,667 <br /> UAAL as a%of covered payroll 56.98% <br /> The Port's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan for 2015 and <br /> the two preceding fiscal years were as follows: <br /> Year Annual Annual OPEB OPEB <br /> Ended OPEB Cost Cost Contributed Obligation (Asset) <br /> $ % $ <br /> 6/30/2013 28,260 0 141,250 <br /> 6/30/2014 32,421 0 172,132 <br /> 6/30/2015 35,737 15.8 202,238 <br /> 67 <br />