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Oth:r Post-Employment Benefits
<br /> The overnmental Accounting Standards Board(GASB)previously issued Statement No. 45,Accounting
<br /> and inancial Reporting by Employers for Post-employment Benefits Other Than Pensions (GASB 45),
<br /> whic addresses how state and local governments must account for and report their obligations related to
<br /> post employment healthcare and other non-pension benefits (referred to as Other Post-Employment
<br /> Ben:fits or"OPEB").
<br /> The City provides other postemployment health insurance benefits for retired employees through two
<br /> defi ed benefit plans: the Municipal Retirees Health Plan (MRHP), a single-employer plan; and the
<br /> Utili ies Retirees Health Plan (URHP), a multi-employer plan. Each plan provides benefits for eligible
<br /> refines and their dependents through the City's group health insurance plans, which cover both active and
<br /> retir:d members. Since the premium is a blended rate determined on the active and retiree population,the
<br /> retir:es are receiving an implicit rate subsidy. The implicit rate subsidy is the additional cost of health
<br /> ins ance to current employees and the City as a result of the higher cost of providing health insurance to
<br /> retir:es. Contribution requirements are reviewed at the time changes are made to the plans. Benefit
<br /> prov sions for MRHP are established and amended by the City, while the Utility has been delegated
<br /> authority to establish and amend benefit provisions for URHP. Eligible retirees receiving benefits are
<br /> requ red to pay 100%of the total premium.
<br /> The ity's annual OPEB cost for each plan is calculated based on the annual required contribution(ARC)
<br /> oft - employer, an amount actuarially determined in accordance with the parameters of GASB 45. The
<br /> ARS represents the level of funding that, if paid on an ongoing basis, is projected to cover normal cost
<br /> each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed
<br /> thirty years. The URHP has elected to calculate the ARC and related information using the alternative
<br /> measurement method permitted for employers in plans with fewer than one hundred total plan members.
<br /> Co ponents of the annual OPEB cost, the amount actually contributed to the plan, and the changes in the
<br /> net l FEB obligation to the plan for the fiscal year ended December 31, 2017 are as follows:
<br /> MRHP URHP
<br /> Annual required contribution $107,970 $10,411
<br /> Interest on net OPEB obligation 17,320 2,469
<br /> Adjustment to ARC (26,447) (3,836)
<br /> Annual OPEB cost(expense) $ 98,843 $ 9,044
<br /> Contributions made (47,958) (1,052)
<br /> Increase in net OPEB obligation $ 50,885 $ 7,992
<br /> Net OPEB obligation—beginning of year 494,858 70,545
<br /> Net OPEB obligation—end of year $545,743 $78,537
<br /> Funi ed status of the OPEB as reported in the last three actuarial reports received:
<br /> Unfunded UAAL as
<br /> Actuarial Actuarial a percentage
<br /> •ctuarial Actuarial Value Accrued Accrued of Annual
<br /> Val ation Date of Assets Liability Liability(UAAL) Covered Payroll
<br /> MH' ':
<br /> Jan . y 1, 2017 - 0 - $867,777 $867,777 10.32%
<br /> Jan . 1, 2014 - 0 - 996,344 996,344 13.39
<br /> Jan . 1, 2011 - 0 - 908,610 908,610 13.17
<br /> UH" :
<br /> Jan ary 1, 2017 - 0 - $48,766 $48,766 1.45%
<br /> Jan ary 1,2014 -0- 68,948 68,948 2.45
<br /> Jan ary 1,2011 -0- 42,681 42,681 1.87
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