6.2. SR 06-02-2014 - Laserfiche WebLink

Home Browse Search

CITY OF ELK RIVER,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2013 Note 4: OTHER INFORMATION-CONTINUED The City's annual OPEB cost,the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the last three years are as follows: Percentage of Annual Employer Annual OPEB Net Pension Fiscal Year Ended OPEB Cost Contribution Cost Contributed Obligation MRHP: 12/31/2011 $ 99,058 $ 25,001 25% $ 174,636 12/31/2012 97,719 36,810 38% 235,545 12/31/2013 96,519 48,803 51% 283,261 URHP: 12/31/2011 $ 5,663 $ -% $ 35,759 12/31/2012 4,601 - -% 40,360 12/31/2013 6,073 1,391 23% 45,042 d. Funded Status and Funding Progress As of January 1,2011,the most recent actuarial valuation date,the funded status of the plan was as follows: Municipal Utility Retiree Retiree Health Plan Health Plan Actuarial accrued liability(a) $ 908,610 $ 42,681 Actuarial value of plan assets(b) - - Unfunded actuarial accrued liability(a-b) SS 908,610 $ 42,681 Funded ratio(b/a) 0.00% 0.00% Covered payroll (c) $ 6,901,671 $ 2,286,547 Unfunded actuarial accrued liability as a percentage of covered payroll((a-b)/c) 13.17% 1.87% 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 healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required 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, presents multiyear 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. Actuarial Methods and Assumptions Projections 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 of benefit costs between the employer and plan members to that point. The methods and 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. 60