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<br />. .No~ 9'- EMPLOYEE: BENEFITS (CONTINUED). : <br /> <br />I.. <br />I <br />i <br />I. <br />I., <br />I,: <br /> <br />For the miscellaneous pian, the plan was,84.9% funded,. the AAL f~r benefits was $162,321,731, :and the <br />actuarial value of .plan assets was $137;754.272, resulting in a: VAAL of $24,567,45.9. The covered <br />paYfoll was $29,321.854 and'the ratio ofUAAL to the c(.we~ed payroll was 83:8% <br /> <br />B. . P~S( Emp,:oy-"'ent B~efi~ <br /> <br />The City :administers a single-employer de.fined benefit po.st:employment healthcare plan. Permanent <br />employees .who retire un~er :the City's retirement. plan (CalPERS) 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 premi.um rate.... Medical insurance premiums for: spouses and other <br />d.ependenis.:generalJy are not paid by the City. fn the.'case of pub'li.c safety disability retirement, the City <br />provides medical insura.nce for.dependents. Currently there are 260 retirees receivingthis benefit, . <br /> <br />The City is n~t required by law, or cont~ctual agreeme~t to,prov.ide funding .for :retire~ health costs other,' <br />than the pay..as-you~go, a~ount necessary to provide current benefits to retirees.. The City has established <br />a ,policy to.make'contributions to the Employee.Benefits internal serVice fund for the purpose: of funding <br />its .e;alculated obl~gations over, a period of time. For the fiscal year ended :June 30, 2008, the City <br />contributed $2,160,892 to.: the. internal service fund of which $1,480,732 represented pay~as-yo.u-go <br />health 'expenses, and: $680,.160 represented amounts set as.jdefor future benefits. <br /> <br />.:'[he. City's annual: other .post empiriynl~nt benefit (OPEB) ~~s{(expense) :is .,calculated based :ontlle <br />annual. -required contribution of the employer (ARC), an: amount ;actuarially determined in ,accordance' <br />with the parameters of GASB. Statement 45. 11le ARc represents a level of ftindillg that, if paid on an, <br />ongoing. basis, is projected to cover . normal. "costs each ,year and..:amortize "any unfunded actuanal~ <br />liabilities (or funding excess) over a .perioc(notto exce.ed thirty years... The ,folJowingtabJe shows the <br />. ': components of the City's annual OPEB costs for th.e year, the amount actUally contributed .to the .plah, <br />. and changes in the City's net OPEB obligation. ." . . <br /> <br />. .. ... <br />. . : . <br />.: ;Annual. required.contributicm <br />Payments made. ., " ., <br />. In(:rease (d.ecrease)hl net OPEB obligation. <br />.' Net OPEB obligation ~ beginning of year .. <br />.. N~tOPEBobligation -.endjn'g,ofy~ <br /> <br />$04,744,124 <br />(1.48()~ 732) . . <br />.; 3.263,392 . <br />0, <br />. $3 .2~63 32..,. . <br /> <br />: The. City ,annual' OPEB cost. the percentage:: df annu~l OPEB Cost contributed 'to. the: pll;Ul. and the net <br />..;OPEB obliga~ion for the fiscal year ended ;)une 30, 2008 were as fotl~w::'.. , . <br /> <br />. Year <br />:. ,~ilde4 <br /> <br />. Annual <br />OPEBCost <br />$. <br />;., 4744 124 <br />, '.. <br /> <br />Annual OPEB <br />CosrConlributed ; <br />% <br />31 <br /> <br />OPEB, ; <br />Obligation (Asset) <br />. : -$-. <br />3.263,392 <br /> <br />.6/30/08 <br /> <br />. I I .. . <br /> <br />;.As of January.1, 20~6, .th~ most recentactuarial valuation date,. the pl~n was: 0%. funded. The ~ctuari~l. <br />, accrued liability (AAL) , for benefits' was $5,1 ,..S44,OOO,and .th~ actuarial.walue: of plan assets' was $,0, <br />. /esultiil.g in an unfunded :actuarial accrued liability (VAAL) of $SJ;844~OOO.: 1J1e covered payroll (annual. <br />. payroll.of active, employees covered by the plan) was $42,505,693 .and the ratio ofUAAL to the covered <br />., payroll was 122%. <br /> <br />. Actuarial valmiiions.. of an. ongo,ing plan . involveest1~a~s of: th.e 'v~l~e .of reported .atuounts and.- <br />. .assumptions. about. the .::probabi.lity of. occurrence of. events far into. the. future. Examples include..;: <br />,-: aSsumptions' about fu~re employment~ mortality, .and the.healthcare' cost trend. Amounts detennined: <br />.; :: regarding the funded status of the .plan and the annual requir~d contributions of the employer are. subject. <br /> <br /> <br />.52. <br />