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City of Redwood City 6.1.D. - Page 95
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED)
<br />The CERBT's administrator, CalPERS, issues a publicly available financial report consisting of financial
<br />statements and required supplementary information for CERBT in aggregate. The report may be obtained
<br />by writing to CalPERS, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. During FY 2015-16, the
<br />City contributed $5,982,000, or 100%, of the annual OPEB cost to the retiree health plan.
<br />Total current payroll for all covered employees for the fiscal year ended June 30, 2016 was
<br />$57,881,620.
<br />The City's annual other post -employment benefit (OPEB) cost (expense) is calculated based on the annual
<br />required contribution (ARC) of the employer, an amount actuarially determined in accordance with the
<br />parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis,
<br />is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding
<br />excess) over a period not to exceed thirty years.
<br />The following table shows the components of the City's annual OPEB costs for the year, the amount
<br />actually contributed to the plan, and changes in the City's net OPEB obligation.
<br />Annual required contribution
<br />$ 5,920,000
<br />Interest on net OPEB obligation
<br />505,000
<br />Adjustmentto annual required contribution
<br />(443,000)
<br />Annual OPEB cost
<br />5,982,000
<br />Contributions made to irrevocable trust
<br />(2,889,260)
<br />Benefit payments made outside of trust
<br />(3,092,740)
<br />Increase in net OPEB obligation
<br />-
<br />Net OPEB obligation - beginning of the year
<br />6,962,477
<br />Net OPEB obligation - end of year
<br />$ 6,962,477
<br />The General fund, the Capital Outlay fund, and other non -major funds have been used to finance the
<br />net OPEB obligation.
<br />The City annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
<br />OPEB obligation for the fiscal year ended June 30, 2016 and the two preceding years were as follows:
<br />As of June 30, 2015, the most recent actuarial valuation date, the plan was 25.9% funded. The actuarial
<br />accrued liability (AAL) for benefits was $70,852,000, and the actuarial value of plan assets was
<br />$18,382,000, resulting in an unfunded actuarial accrued liability (UAAL) of $52,470,000. The covered
<br />payroll (annual payroll of active employees covered by the plan) was $51,466,341 and the ratio of UAAL
<br />to the covered payroll was 101.9%.
<br />Annual OPEB Cost
<br />Year Ended
<br />Annual OPEB Cost
<br />Contributed
<br />OPEB Obligation (Asset)
<br />6/30/2014
<br />4,890,000
<br />100
<br />6,962,477
<br />6/30/2015
<br />5,037,000
<br />100
<br />6,962,477
<br />6/30/2016
<br />5,982,000
<br />100
<br />6,962,477
<br />As of June 30, 2015, the most recent actuarial valuation date, the plan was 25.9% funded. The actuarial
<br />accrued liability (AAL) for benefits was $70,852,000, and the actuarial value of plan assets was
<br />$18,382,000, resulting in an unfunded actuarial accrued liability (UAAL) of $52,470,000. The covered
<br />payroll (annual payroll of active employees covered by the plan) was $51,466,341 and the ratio of UAAL
<br />to the covered payroll was 101.9%.
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