Cabarrus County Comprehensive Annual Financial Report

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2012 3 Year Trend Information Fiscal Year Annual Pension Percentage of Net Pension Ended Cost (APC) APC ContributedObligation 6/30/2010 $405,103 87.34%$212,897 6/30/2011 539,726 76.35%340,558 6/30/2012 431,594 127.79%220,616 Funded Status and Funding Progress. As of December 31, 2011, the most recent actuarial valuation date, the plan was 25.57 percent funded. The actuarial accrued liability for benefits was $3,402,919, and the actuarial value of assets was $870,274, resulting in an unfunded actuarial accrued liability (UAAL) of $2,532,645. The covered payroll (annual payroll of active employees covered by the plan) was $8,788,658 and the ratio of the UAAL to the covered payroll was 28.82 percent. 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 are increasing or decreasing over time relative to the actuarial accrued liability for benefits. c. Supplemental Retirement Income Plan (401k) Plan Description. The County contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan also provides retirement benefits to law enforcement officers employed by the County. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provision to the North Carolina General Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454. Funding Policy. Article 12E of G.S. Chapter 143 requires the County to contribute each month an amount equal to five percent of each law enforcement officer's salary, and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan. The County has chosen to extend this benefit to all its full and part-time (who are eligible for North Carolina Local Governmental Employees' Retirement System) employees. Contributions by Cabarrus County for the year ended June 30, 2012 were $2,613,144 which consisted of $1,950,198 from the County and $663,036 from the employees. In February 2009, the Alliance decided to discontinue the employer’s contribution to the 401(k) plan. Participating Alliance employees made contributions of $252,288 for the year ended June 30, 2012. d. Register of Deeds' Supplemental Pension Fund Plan Description. Cabarrus County also contributes to the Registers of Deeds' Supplemental Pension Fund (Fund), a noncontributory, defined contribution plan administered by the North Carolina Department of State Treasurer. The Fund provides supplemental pension benefits to any eligible county register of deeds who is retired under the Local Government Employees' Retirement System (LGERS) or an equivalent locally sponsored plan. Article 3 of G. S. Chapter 161 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Register of Deeds’ Supplemental Pension Fund is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for the Registers of Deeds’ Supplemental Pension Fund. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454. FundingPolicy. On a monthly basis, the County remits to the Department of State Treasurer an amount equal to one and one-half percent (1.5%) of the monthly receipts collected pursuant to Article 3 of G.S. 161. Immediately following January 1 of each year, the Department of State Treasurer divides ninety-three percent (93%) of the 74