Reso 2011-053 Attachment - Laserfiche WebLink

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City of San Leandro Notes to Basic Financial Statements For the year ended June 30, 2010 NOTE 15 —OTHER POST EMPLOYMENT BENEFITS, Continued The City's annual OPEB cost, equal to the ARC, the percentage of OPEB cost contributed to the plan and the net OPEB obligation for 2010 and the preceding years were as follows: Fiscal Year Percentage of Ended June Annual OPEB Contributions Annual OPEB Cost Net OPEB 30, Cost Made Contributed Obligation 2009 1,791,000 1,411,315 79% 379,685.00 2010 1,870,000 1,359,742 73% 510,258.00 C. Plan Funded Status Information I As of June 30, 2009, the latest valuation date, the funded status of the plan, was as follows: Actuarial accrued liability (AAL) 16,853,000 Actuarial value of plan assets 500,000 Unfunded actuarial accrued liability (UAAL) 16,353,000 Funded ration actuarial value of plan assets/AAL 3% Covered payroll active plan members) 29,408,000 UAAL as percentage of covered payroll 55.6% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual requires contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, present multi -year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. D. Actuarial Methods and Assumptions Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and the plan members to the point. The methods assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2009 actuarial valuation, the entry age normal actuarial cost method was used with a thirty (30) year closed amortization period and level percentage of pay. There were no assets in the plan as of the valuation date. The actuarial assumptions are as follows: • Healthcare costs trends utilized actual rated for 2009 and a 9.5% increase for HMO and 10% increase for PPO plans. Future years were reduced to an ultimate rate 5% for both HMO and PPO plans by 2021. • The CPI was assumed to be a constant at 3% per year. *Assets in the plan will be invested in a moderately conservative money market portfolio that will provide current income with capital appreciation as a secondary objective. • 5.5% Investment rate of return (net of administrative expenses). 80