|
CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<br />NOTE 13 — PENSION PLAN (Continued)
<br />The $7,668,583 and $7,027,678 for Miscellaneous and Safety, respectively, will be reported as deferred
<br />outflows of resources related to contributions subsequent to the measurement date and will be recognized
<br />as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as
<br />deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as
<br />pension expense as follows:
<br />NOTE 14 — OTHER POST EMPLOYMENT BENEFITS
<br />OPEB Liabilities, OPEB Expenses and Deferred OutflowsJnflows of Resources Related to OPEB - For
<br />purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
<br />resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's
<br />OPEB Plan and additions to/deductions from the OPEB Plan's fiduciary net position have been
<br />determined on the same basis as they are reported by PARS. For this purpose, benefit payments are
<br />recognized when currently due and payable in accordance with the benefit terms. Investments are
<br />reported at fair value.
<br />A. Plan Description
<br />The City administers a single -employer defined -benefit post -employment healthcare plan. Dependents are
<br />eligible to enroll, and benefits continue to surviving spouses. The plan was established by City Council in
<br />fiscal year 2009-10 and provides reimbursements to retirees for qualified expenses. Retirees who have
<br />between five and fifteen years of service and meet certain criterion based upon retirement date, household
<br />income in the most recent calendar year, and age are entitled to reimbursements for qualified expenses.
<br />Benefits Provided - Eligibility for retiree health benefits requires retirement from the City. Retirees may
<br />receive up to $360 monthly medical and $115.74 monthly dental reimbursement prior to age 65. Some
<br />retirees may receive $200 monthly medical reimbursement from age 65 to age 70. With the exception of
<br />certain retirees who are eligible for the $200 payment as discussed, after age 65, the retirees receive the
<br />PEMHCA minimum amount only.
<br />Amendments to benefit provisions are negotiated by various bargaining units at the City and must be
<br />approved by Council. In fiscal year 2008-09, the City established an irrevocable exclusive agent multi-
<br />employer benefit trust which is administered by Public Agency Retirement Services (PARS). The trust
<br />will be used to accumulate and invest assets necessary to reimburse retirees. No separate financial reports
<br />are issued by PARS for the OPEB plan.
<br />0A,
<br />Miscellaneous
<br />Safety
<br />Plan
<br />Plan
<br />Total
<br />Year Ended
<br />Annual
<br />Annual
<br />Annual
<br />June 30
<br />Amortization
<br />Amortization
<br />Amortization
<br />2020
<br />$ 2,931,614
<br />$ 8,095,251
<br />$ 11,026,865
<br />2021
<br />292,533
<br />3,308,951
<br />3,601,484
<br />2022
<br />(2,088,216)
<br />(2,565,405)
<br />(4,653,621)
<br />2023
<br />(577,403)
<br />(593,873)
<br />(1,171,276)
<br />$ 558,528
<br />$ 8,244,924
<br />$ 8,803,452
<br />NOTE 14 — OTHER POST EMPLOYMENT BENEFITS
<br />OPEB Liabilities, OPEB Expenses and Deferred OutflowsJnflows of Resources Related to OPEB - For
<br />purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of
<br />resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's
<br />OPEB Plan and additions to/deductions from the OPEB Plan's fiduciary net position have been
<br />determined on the same basis as they are reported by PARS. For this purpose, benefit payments are
<br />recognized when currently due and payable in accordance with the benefit terms. Investments are
<br />reported at fair value.
<br />A. Plan Description
<br />The City administers a single -employer defined -benefit post -employment healthcare plan. Dependents are
<br />eligible to enroll, and benefits continue to surviving spouses. The plan was established by City Council in
<br />fiscal year 2009-10 and provides reimbursements to retirees for qualified expenses. Retirees who have
<br />between five and fifteen years of service and meet certain criterion based upon retirement date, household
<br />income in the most recent calendar year, and age are entitled to reimbursements for qualified expenses.
<br />Benefits Provided - Eligibility for retiree health benefits requires retirement from the City. Retirees may
<br />receive up to $360 monthly medical and $115.74 monthly dental reimbursement prior to age 65. Some
<br />retirees may receive $200 monthly medical reimbursement from age 65 to age 70. With the exception of
<br />certain retirees who are eligible for the $200 payment as discussed, after age 65, the retirees receive the
<br />PEMHCA minimum amount only.
<br />Amendments to benefit provisions are negotiated by various bargaining units at the City and must be
<br />approved by Council. In fiscal year 2008-09, the City established an irrevocable exclusive agent multi-
<br />employer benefit trust which is administered by Public Agency Retirement Services (PARS). The trust
<br />will be used to accumulate and invest assets necessary to reimburse retirees. No separate financial reports
<br />are issued by PARS for the OPEB plan.
<br />0A,
<br />
|