AG 2009 11 16 - Laserfiche WebLink

Home Browse Search

Cabarrus County, North Carolina Notes to the Financial Statements For the Fiscal Year Ended June 30, 2009 Membership of the plan consisted of the following at December 31, 2007, the date of the latest actuarial valuation: Retirees receiving benefits 87 Active Plan Members: General Employees 489 Law Enforcement 155 Total 731 Funding Policy. The County pays the full cost of coverage for the healthcare benefits paid to qualified retirees. Retirees are required to pay for dependent coverage. The County contributions are financed on a pay as you go basis. In the future, employees and retirees may be required to participate in premiums for basic group health and life insurance plans. The current ARC rate is 8.51 % of annual covered payroll (5.59% normal cost and 2.92% accrued liability). The County contributed $585,283 or 3% of annual covered payroll for the current fiscal year. The County is self insured for healthcare coverage. The County's required contributions for employees not engaged in law enforcement and for law enforcement officers represented 1.5% and .08% of covered payroll. Contributions of $50 per month were made by employees and retirees who currently use tobacco products and have not signed a non use tobacco certification. These contributions were $4,200 for the current year. There were no other contributions made by employees, except for dependent coverage in the amount of $49,606. Summary of Significant Accounting Policies. Postemployment expenditures for former employees not engaged in law enforcement are made from the General Fund. This fund is maintained on a modified accrual basis of accounting. No funds are set aside to pay benefits and administrative costs. These expenditures are paid as they come due. Annual OPEB Cost and Net Pension Obligation. The County's annual 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 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 County's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County's net OPEB obligation for the healthcare benefits: Annual Required Contribution $ 2,156,844 Interest on Net OPEB Obligation - Adjustment to annual required contribution - Annual OPEB cost (expense) 2,156,844 Contributions made (585,283) Increase (decrease) in net OPEB obligation 1,571,561 Net OPEB obligation, beginning of year _ 1,341,176 Net OPEB obligation, end of year The County's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation were as follows: For Year Ended Annual Percentage of Annual Net OPEB June 30 OPEB Cost OPEB Cost Contributed Obligation 2008 $1,850,169 28% $1,341,176 2009 $2,156,844 27% $2,912,737 67 Attachment number 3 G-8 Page 341