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process and assumptions, and, for certain employers, the extent to which the plan has been funded over time. As required, the City adopted GASB 43/45 beginning with Fiscal Year 2008 -09. City Plan Description. The City's defined benefit Other Post Employment Benefit (OPEB) Plan (the "Plan ") is a single - employer defined benefit healthcare plan administered by the City of San Leandro. Retirees who have at least ten years of service and meet certain criterion based upon retirement date, household income in the most recent calendar year and age are entitled to reimbursements for qualified expenses. Annual maximum reimbursement amounts differ depending on when an employee retired from City service. The majority of retirees may be eligible for a maximum of $4,320 in annual reimbursements. Amendments to benefit provisions are negotiated by various bargaining units at the City and must be approved by Council. In Fiscal Year 2008 -09, the City established an irrevocable exclusive agent multi - employer benefit trust which is administered by Public Agency Retirement Services (PARS). The trust will be used to accumulate and invest assets necessary to reimburse retirees. Annual OPEB Cost and Net OPEB Obligation. The Annual Required Contribution ( "ARC ") is 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 the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for Fiscal Year 2010 -11, the amount actually contributed to the plan, and changes in the City's Net OPEB obligation: Annual required contribution $ 1,377,000 Interest on net OPEB obligation 50,000 Adjustment to annual required contribution 4( 0,000) Annual OPEB cost (expense) 1,387,000 Contributions (benefit payments) 920.415 Increase in net OPEB obligation $ 466,585 Net OPEB obligation — beginning of year 889.943 Net OPEB obligation — end of year $ 1,356,528 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the last three Fiscal Years wereare as follows: A -29 Percentage of Fiscal Year Annual Annual OPEB Net OPEB Ended OPEB Cost Contribution Cost Contributed Obligation June 30, 2009 $ 1,791,000 $1,411,315 79% $ 379,685 June 30, 2010 1,870,000 1,359,742 73% 510,258 June 30, 2011 1,387,000 920,415 66% 466,585 A -29