Laserfiche WebLink
City of Redwood City 7.1.G. - Page 92 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2013 <br /> NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br /> 2013, acceptance to CERBT was not yet approved. If accepted for participation in CERBT, the Port will <br /> initially fund the June 30, 2013 net OPEB obligation of $141,250; each subsequent fiscal year's Annual <br /> Required Contribution (ARC) will be funded annually. <br /> For the fiscal year ended June 30, 2013, the Port's annual OPEB cost was $28,260; of this amount <br /> $2,052 was expensed and funded by reimbursements to current retirees and the remaining $26,208 net <br /> OPEB obligation was expensed and recorded as a liability. Combined with the $115,042 net OPEB <br /> obligation as of June 30, 2012, the total net OPEB obligation as of June 30, 2013 was $141,250. <br /> The annual required contribution was determined as part of the June 30, 2011 actuarial valuation using <br /> the Entry Age Actuarial Cost Method and Assumptions consistent with the 2010 CaIPERS OPEB <br /> Assumptions Model. The actuarial assumptions included: (a) salary increases of 3.25% per year, (b) a <br /> discount rate of 6.36 %, (c) 100% of eligible employees assumed to elect coverage upon retirement and <br /> to remain covered for life, (d) retirement, withdrawal, and mortality rates based on CaIPERS <br /> Assumption model for the classification "public agency miscellaneous 2.7% at 55 ", and (e) medical <br /> premium inflation rates ranging from 9% to 6% over time. The actuarial present value of future benefits <br /> was calculated for each individual using the economic assumption and specific member data, then <br /> aggregated. The amortization component of the unfunded actuarial accrued liability was based on a 30 <br /> year amortization period. <br /> The following table shows the components of the Port's annual OPEB costs for the year, the amount <br /> actually contributed to the plan, and changes in the Port's net OPEB obligation: <br /> Annual OPEB Costs and Net OPEB Obligation <br /> Normal cost $ 14,257 <br /> Amortization of unfunded actuarial accrued liability 14,003 <br /> Annual required contribution 28,260 <br /> Interest on beginning net OPEB obligation <br /> Annual required contribution adjustment <br /> Annual OPEB expense 28,260 <br /> Actual current year employer payment (2,052) <br /> Increase in OPEB obligation 26,208 <br /> Net OPEB obligation at June 30, 2012 115,042 <br /> Net OPEB obligation at June 30, 2013 $ 141,250 <br /> OPEB Unfunded Actuarial Accrued Liabilities <br /> Actuarial accrued liabilities $ 362,074 <br /> Actuarial value of plan assets <br /> Unfunded actuarial accrued liabilities (UAAL) $ 362,074 <br /> Funded ratio 0% <br /> Covered payroll $ 629,034 <br /> UAAL as a % of covered payroll 57.56% <br /> 64 <br />