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<br />. .No~ 9'- EMPLOYEE: BENEFITS (CONTINUED). :
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<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%
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<br />B. . P~S( Emp,:oy-"'ent B~efi~
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<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, .
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<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.
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<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. ." . .
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<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~
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<br />$04,744,124
<br />(1.48()~ 732) . .
<br />.; 3.263,392 .
<br />0,
<br />. $3 .2~63 32..,. .
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<br />: The. City ,annual' OPEB cost. the percentage:: df annu~l OPEB Cost contributed 'to. the: pll;Ul. and the net
<br />..;OPEB obliga~ion for the fiscal year ended ;)une 30, 2008 were as fotl~w::'.. , .
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<br />. Year
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<br />. Annual
<br />OPEBCost
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<br />;., 4744 124
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<br />Annual OPEB
<br />CosrConlributed ;
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<br />31
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<br />OPEB, ;
<br />Obligation (Asset)
<br />. : -$-.
<br />3.263,392
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<br />.6/30/08
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<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%.
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<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.
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<br />.52.
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