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<br />48 <br />Other Post–Employment Retirement Benefits. <br /> <br />General. In April 2004, the GASB issued “Statement No. 43, Financial Reporting <br />for Post–employment Benefit Plans Other Than Pension Plans” (“Statement No. 43”). <br />Statement No. 43 establishes uniform financial reporting standards for post–employment <br />healthcare and other nonpension benefits (“OPEB”) plans. The approach followed in <br />Statement No. 43 is generally consistent with the approach adopted for defined benefit <br />pension plans with modifications to reflect differences between pension plans and OPEB <br />plans. Statement No. 43 became applicable to the City for the Fiscal Year ending June <br />30, 2009. <br /> <br />Subsequently, in June 2004, GASB issued “Statement No. 45, Accounting and <br />Financial Reporting by Employers for Post–employment Benefits Other Than Pensions” <br />(“Statement No. 45”), which addresses how state and local governments should account <br />for and report their costs and obligations related to OPEB. Statement No. 45 generally <br />requires that employers account for and report the annual cost of OPEB and the <br />outstanding obligations and commitments related to OPEB in essentially the same <br />manner as they currently do for pensions. Statement No. 45’s provisions may be <br />applied prospectively and do not require governments to fund their OPEB plans. An <br />employer may establish its OPEB liability at zero as of the beginning of the initial year of <br />implementation; however, the unfunded actuarial liability is required to be amortized over <br />future periods. Statement No. 45 also establishes disclosure requirements for <br />information about the plans in which an employer participates, the funding policy <br />followed, the actuarial valuation process and assumptions, and, for certain employers, <br />the extent to which the plan has been funded over time. <br /> <br />As required, the City adopted GASB 43/45 beginning with Fiscal Year 2008–09. <br /> <br />City Plan Description. The City’s defined benefit Other Post Employment Benefit <br />(OPEB) Plan (the “Plan”) is a single–employer defined benefit healthcare plan <br />administered by the City of San Leandro. Retirees who have at least ten years of <br />service and meet certain criteria based upon retirement date, household income in the <br />most recent calendar year and age are entitled to reimbursements for qualified <br />expenses. <br /> <br />Annual maximum reimbursement amounts differ depending on when an <br />employee retired from City service. The majority of retirees may be eligible for a <br />maximum of $4,320 in annual reimbursements. Amendments to benefit provisions are <br />negotiated by various bargaining units at the City and must be approved by the City <br />Council. In Fiscal Year 2008–09, the City established an irrevocable exclusive agent <br />multi–employer benefit trust which is administered by Public Agency Retirement <br />Services (“PARS”). The trust will be used to accumulate and invest assets necessary to <br />reimburse retirees. Separate financial reports are issued by PARS for the OPEB Plan. <br />The report can be obtained by writing to PARS at 5141 California Avenue, Suite 150, <br />Irvine, CA. 92617–069, or by calling 800–540–6369. <br /> <br />Annual OPEB Cost and Net OPEB Obligation. Annual required contributions <br />(“ARC”) are actuarially determined in accordance with the parameters of GASB <br />Statement No. 45, and the City’s annual OPEB costs are thereafter calculated from ARC <br />amounts. Annual required contribution amounts are established and may be amended