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City of Redwood City 6.1.F. - Page 85
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2012
<br /> NOTE 9—EMPLOYEE BENEFITS�CONTINUED�
<br /> As of June 30, 2011, the most recent actuarial valuation date, the public safety plan was 75.7% funded,
<br /> the actuarial liability (AAL) for benefits was $249,306,267, and the actuarial value of plan assets was
<br /> $188,706,656, resulting in an unfunded actuarial accrued liability (UAAL) of $60,599,611. The covered
<br /> payroll (annual payroll of active employees covered by the plan) was $20,072,380 and the ratio of UAAL
<br /> to the covered payroll was 301.9%.
<br /> For the miscellaneous plan, the plan was 80.5%funded, the AAL for benefits was $219,035,437, and the
<br /> actuarial value of plan assets was$176,271,009, resulting in a UAAL of$42,764,428. The covered payroll
<br /> was$28,015,399 and the ratio of UAAL to the covered payroll was 152.6%
<br /> The Schedule of Funding Progress, presented as Required Supplementary Information following the
<br /> notes to the financial statements, presents multiyear trend information about whether the actuarial
<br /> value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
<br /> benefits.
<br /> 8. Post Employment Benefits
<br /> Redwood City:
<br /> The City administers a single-employer defined benefit post employment healthcare plan. Permanent
<br /> employees who retire under the City's retirement plan (CaIPERS) 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 premium rate. Medical insurance premiums for spouses and other
<br /> dependents generally are not paid by the City. In the case of public safety disability retirement, the City
<br /> provides medical insurance for dependents. Currently there are 327 retirees receiving this benefit.
<br /> The City is not required by law or contractual agreement to provide funding for retiree health costs
<br /> other than the pay-as-you-go amount necessary to provide current benefits to retirees.The City's retiree
<br /> health plan is being managed through the California Employer's Retiree Benefits Trust (CERBT), an
<br /> irrevocable trust fund that allows public employers to prefund the future cost of their retiree health
<br /> insurance benefits and other post employment benefits for their covered employees or retirees.
<br /> The CERBT's administrator, CaIPERS, issues a publicly available financial report consisting of financial
<br /> statements and required supplementary information for CERBT in aggregate. The report may be
<br /> obtained by writing to CaIPERS, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. During FY
<br /> 2011/12, the City contributed $4,918,000, or 100%, of the actuarially required contributions to the
<br /> retiree health plan.
<br /> Total current payroll for all covered employees for the fiscal year ended June 30, 2012 was$45,070,905.
<br /> The City's annual other post employment benefit (OPEB) cost (expense) is calculated based on the
<br /> annual required contribution of the employer (ARC), an amount actuarially determined in accordance
<br /> with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
<br /> ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial
<br /> liabilities (or funding excess)over a period not to exceed thirty years.
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