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<br />NOTE .9 - .EMPLOVEE ;BENEFlTS (CONTINUED) , <br /> <br /> <br />PERS determines contribution requirements using a modifiCation of the Entry Age.Normal Method~ Uilde,r <br />,this metho~ .the Citi s total rionna] benefit cost for each employee froin. date of hire to date of retirement is <br />e~pressed as aJevel:percenlilge of the related'total payroll cost. Normal benefit cost-under this method is <br />the: level amount the employer must .pay annually to fund an employee's projected retirement benefit.,. This <br />)eve~ percentage of payroJJ m~thod is- used to ainortize.any unfunded actuariaHiabilities~ . <br /> <br />- . <br />. . . .. <br />.PERS Uses the market-related value method of valuing'the pian's. assets; An .invesnnenr rate of return' of <br />7.75% is assumed, including inflation at 3.00%.. AnnuaLsalary increases are'8ssumed to vary by duration of <br />. service~. The, City~s unfunded. actuarial accrueP ~iability is bemg amorti7..ed as a level perCentage. of payroll <br />,on a c~'osed baSis.., The remaining amortization :periods fot the City's plans are as follows: . . <br /> <br />..,. Public Safety <br />Miscellaneous <br /> <br />June"30, 2039 <br />June 30. 2027.. <br /> <br />. .. .... .' . <br /> <br />. Audited annual. .financial statements and ten-year trend :infonnation for. the fiscal. year ended June 3b; 2008, <br />the most Tec~t available, are ava.iJable from PERS .at P.O. Box 942709, ~acra.mentq,-CA, 94229-2709. <br /> <br />.. . <br />. . . . '. <br />. : .', ,",. . <br />Total current payroll for, all covered .employ~s f~r the fiscal :year e~ded June 30, 2008 was $47,980~111. <br />The payroll subject 'to retirement amounted tei $19j :13,602., for pubHc safety: :and' $28,866,509 for the ., <br />: , ; m~celhmeous group.' . . . .. : . . :. .::. . <br /> <br />. .PERS has . reponed that t~e va]u~ .of the net ;'aSscts in ,the plan held for pension benefits chang~d as <br />follo~s during the ye~.ended June 30, 200.7,.the mos~;recent available: ,. <br /> <br />Beginning Balancer6l30106 ' . . <br />, Contnbutions Received <br />Bene fits ,and Re funds. Pai d <br />E:XPeCU:d.lllvest~.entEamii1gs;Cre~ted. ,.. . <br /> <br />Expe~red Acruarial.,Value of ASsets 6/30107' <br /> <br />Public'Safetv <br />$ <br />.137~77&.087. <br />: 7 ~O'96,293 :, <br />. (7,463,206) <br />10,663.849 <br /> <br />148:.075,023 <br /> <br />, 175.461,747. <br /> <br />.150!380~632 <br /> <br />. . <br /> <br />M~ket V~lue ofA.ssets 6I3.0IC17.;. ... . <br />AGt~.r~1 VaJue of Assets 6/30/07 <br /> <br />. . <br />. . . . <br />Addjtional,disclosures w~lJ be. i~~lud~d' wh~n:. ;I~ade available by PER-So <br /> <br />Miscellaneous " <br />$' : .. <br />. ..123,772.972 <br />\; 7,880,302 <br />. (5.948,601). <br />9,665,862 <br /> <br />]35~3 70,53 5 <br /> <br />159,238.364 <br /> <br />137.754,272. <br /> <br />. ' . .' Three ye~rs. of tre.nd: tnformation regardinga~nu~l pensionco~t:S is .summ~rized ::as tbllows: <br /> <br />Annual.:: Percentage. of . <br />:: .Pension Cost' APC.,: Net pension.. <br />APC Contributed: : Obligation <br /> <br />..: . FiscaL Year . <br /> <br />2006 : ::9,304,563 100% 0' <br />2007, : 8; 1,66.097 10P% 0 <br />2008' 10,400,89:8 100% : 0 <br /> <br />. .' .. . <br /> <br />, As of June 30, 2007 ,the: mo~t' r~cent actuarial valuation .date, the .public safety plan ~as 80~0% funded, <br />the: actuaria( Habilityt~AL) for benefits was $1,87,870,529, and the actuarial value. of plan assets was <br />. . $150~380,632,.res~lting in an unfunded'actuarialaccmed }jab~lity{UAAL) .of $37,489,897. The covered <br />.;payroll (annual payroll of active employees covered by-the plan),~as:$18,14~,02q and the ratio ofUAAL <br />, :,to t~e covered,.payroll was 206.6%. . ' ,. . <br /> <br />.. :5).: <br /> <br />"i: <br />, .. <br /> <br />