HomeMy WebLinkAboutNC Comprehensive Report (Finance) (66)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Other Postemployment Benefit Plan
Plan Description: The City provides a fixed dollar monthly contribution equal to $5 ($10
for management and executive employees) times the number of years of service. Safety
employees may receive the contribution towards non -City health insurance, if evidence of
coverage is provided. The City's contribution is payable to age 65 or Medicare
eligibility, if earlier. Management and executive employees are eligible for the City's
contribution during their lifetime.
Eligibility: Employees are eligible for retiree health benefits if they retire from the City
on or after age 50 with at least 20 years of service (10 years for management and
executive employees). Membership of the plan consisted of the following at June 30,
2012, the date of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits
Active plan members
Total
252
182
434
City's Funding Policy: The contribution requirements of plan members and the City are
established and may be amended by City Council. The contribution required to be made
under City Council and labor agreement requirements is based on a pay-as-you-go basis
(i.e., as medical insurance premiums become due). For fiscal year 2011-12, the City
contributed $92,070 to the plan for current premiums.
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment
benefit (OPEB) cost (expense) is calculated based on the annual required contribution of
the employer (ARC), an amount actuarially determined in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The
following table shows the components of the City's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City's net OPEB obligation
for these benefits:
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