AG 2009 11 16 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Fiscal Year Ended June 30, 2009 service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee's 12 highest months salary in a row during the 24 months prior to his/her death, but the benefit will be a minimum of $25,000 and will not exceed $50,000. Annually, the State sets the County's and the Alliance's monthly contribution rates for death benefits. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. Because the benefit payments are made by the Death Benefit Plan and not the County, the County and the Alliance do not determine the number of eligible participants. For the fiscal year ended June 30, 2009, the County made contributions to the State for death benefits of $37,187 and the Alliance made no contribution. The County's required contributions for employees not engaged in law enforcement and for law enforcement officers represented .09%, and .14% of covered payroll. The contributions to the Death Benefit Plan cannot be separated between the postemployment benefit amount and the other benefit amount. Effective July 1, 2004, pursuant to a new IRS regulation regarding Group Life Insurance benefits, the County is now required to include the amount of group life insurance coverage that exceeds $50,000 as a taxable fringe benefit. As a full-time employee participating in the NC Local Government Retirement System, an employee is eligible for a death benefit of $25,000 to $50,000 and an additional $20,000 the County provides for all employees who have been employed for at least one year. If an employee has purchased additional insurance through the County, this will also be included in the employees total life insurance fringe benefits. If this combined life insurance coverage exceeds the $50,000 limit, the excess amount is multiplied by a premium cost factor per $1,000 based on your age at December 31St provided by the IRS. This amount is then added to the employee's taxable wages on a calendar year basis. 6.Other Postemployment Benefits (OPEB) -Healthcare Benefits Plan Description. Based on a 1997 County approved policy, the County will pay for basic medical insurance for all retirees that qualify based on years of service. The following schedule became effective on July 1, 1997: Years of Service with Cabarrus County and Membership to LGERS Qualified retirement with 10 or more years of service with Cabarrus County Qualified retirement with less than 10 years of service with Cabarrus County of Retiree Health Insurance the Countv Pavs 100% 50 Effective November 1, 2003, the ordinance was amended and reads as follows: Years of Service with Cabarrus County and Membership to LGERS Qualified retirement with 25 or more years of service with Cabarrus County Qualified retirement with less than 10 years of service with Cabarrus County of Retiree Health Insurance the Countv Pavs 100% 50% This amendment applies to those employees coming to work on or after November 1, 2003. Current employees were grandfathered under the ten year requirement. The County's contribution will cease when the retiree becomes eligible for Medicare (or reaches the age where they would have had such benefits had they been qualified for Social Security). A separate audit report was not issued for the plan. 66 Attachment number 3 G-8 Page 340