AgdaPkt 2014-01-13 Interview, Closed and Regular

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7.1.G. - Page 89 Notes to the Basic Financial Statements For the year ended June 30, 2013 NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) The Schedule of Funding Progress, presented as Required Supplementary Information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 8. Post Employment Benefits Redwood City: The City administers a single - employer defined benefit post employment healthcare plan. Permanent employees who retire under the City's retirement plan (CaIPERS) are, pursuant to their respective collective bargaining agreements, eligible to have their medical insurance premiums reimbursed by the City up to the Kaiser family premium rate. Medical insurance premiums for spouses and other dependents generally are not paid by the City. In the case of public safety disability retirement, the City provides medical insurance for dependents. Currently there are 345 retirees receiving this benefit. The City is not required by law or contractual agreement to provide funding for retiree health costs other than the pay -as- you -go amount necessary to provide current benefits to retirees. The City's retiree health plan is being managed through the California Employer's Retiree Benefits Trust (CERBT), an irrevocable trust fund that allows public employers to prefund the future cost of their retiree health insurance benefits and other post employment benefits for their covered employees or retirees. The CERBT's administrator, CaIPERS, issues a publicly available financial report consisting of financial statements and required supplementary information for CERBT in aggregate. The report may be obtained by writing to CaIPERS, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. During FY 2012/13, the City contributed $5,078,000, or 100 %, of the actuarially required contributions to the retiree health plan. Total current payroll for all covered employees for the fiscal year ended June 30, 2013 was $47,154,637. The City's annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. 61