8.1. SR 06-04-2012 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 4: OTHER INFORMATION — CONTINUED The City's annual pension cost, the percentage of annual pension cost contributed, and the net pension obligation for the Relief Association for the year ended December 31, 2011 and the preceding fiscal years was as follows: Three Year Trend information c. Funded Status and Funding Progress As of December 31, 2011, the actuarial accrued liability was $2,540,365, of which $279,535 was unfunded. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Annual Percentage Year Pension of APC Net Pension Ending Cost (A PC) Contributed Obligation 12/31/09 $ 127,024 100% - 12/31/10 131,255 100% 12/31/11 157,022 100 % - c. Funded Status and Funding Progress As of December 31, 2011, the actuarial accrued liability was $2,540,365, of which $279,535 was unfunded. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. Other Postemployment Benefits (OPEB) 1. City of Elk River a. Plan Description The City provides other postemployment health insurance benefits for retired employees through two defined benefit plans: Municipal Retirees Health Plan (MRHP), a single- employer plan, and Utilities Retirees Health Plan (URHP), a multi- employer plan. Each plan provides benefits for eligible retirees and their dependents through the City's group health insurance plans, which cover both active and retired members. Since the premium is a blended rate determined on the active and retiree population, the retirees are receiving an implicit rate subsidy. The MRHP and URHP do not issue publicly available financial reports, b. Funding Policy Contribution requirements are reviewed at the time changes are made to the plans. Benefit provisions for MRHP are established and amended by the City. The Utilities has been delegated authority to establish and amend benefit provisions for URHP. Eligible retirees receiving benefits are required to pay 100% of the total premium, 60 Assets in Excess of Actuarial Actuarial Actuarial (Unfunded) Valuation Value of Accrued Accrued Percentage Date Assets Liability Liability Funded 12/31/11 $ 2,260,830 $ 2,540,365 $ (279,535) 89.0% E. Other Postemployment Benefits (OPEB) 1. City of Elk River a. Plan Description The City provides other postemployment health insurance benefits for retired employees through two defined benefit plans: Municipal Retirees Health Plan (MRHP), a single- employer plan, and Utilities Retirees Health Plan (URHP), a multi- employer plan. Each plan provides benefits for eligible retirees and their dependents through the City's group health insurance plans, which cover both active and retired members. Since the premium is a blended rate determined on the active and retiree population, the retirees are receiving an implicit rate subsidy. The MRHP and URHP do not issue publicly available financial reports, b. Funding Policy Contribution requirements are reviewed at the time changes are made to the plans. Benefit provisions for MRHP are established and amended by the City. The Utilities has been delegated authority to establish and amend benefit provisions for URHP. Eligible retirees receiving benefits are required to pay 100% of the total premium, 60