AG 2012 12 17 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2012 County and the Alliance do not determine the number of eligible participants. For the fiscal year ended June 30, 2012, the County made contributions to the State for death benefits of $36,600 and the Alliance made no contribution. The County's required contributions for employees not engaged in law enforcement and for law enforcement officers represented .08 %, and .14% of covered payroll. The contributions to the Death Benefit Plan cannot be separated between the postemployment benefit amount and the other benefit amount. Effective July 1, 2004, pursuant to a new IRS regulation regarding Group Life Insurance benefits, the County is now required to include the amount of group life insurance coverage that exceeds $50,000 as a taxable fringe benefit. As a full -time employee participating in the NC Local Government Retirement System, an employee is eligible for a death benefit of $25,000 to $50,000 and an additional $20,000 the County provides for all employees who have been employed for at least one year. If an employee has purchased additional insurance through the County, this will also be included in the employees total life insurance fringe benefits. If this combined life insurance coverage exceeds the $50,000 limit, the excess amount is multiplied by a premium cost factor per $1,000 based on age at December 31 provided by the IRS. This amount is then added to the employee's taxable wages on a calendar year basis. 6. Other Postemployment Benefits (OPEB) — Healthcare Benefits Plan Description Based on a 1997 County approved policy, the County will pay for basic medical insurance for all retirees that qualify based on years of service. The plan is a single employer defined plan. The following schedule became effective on July 1, 1997: Years of Service with Cabarrus County and Membership to LGERS Qualified retirement with 10 or more years of service with Cabarrus County % of Retiree Health Insurance the County Pays 100% Qualified retirement with less than 10 years of service with Cabarrus County 50% Effective November 1, 2003, the ordinance was amended and reads as follows: Years of Service with Cabarrus County and Membership to LGERS Qualified retirement with 25 or more years of service with Cabarrus County % of Retiree Health Insurance the County Pays 100% Qualified retirement with less than 10 years of service with Cabarrus County 50% This amendment applies to those employees coming to work on or after November 1, 2003. Current employees were grandfathered under the ten year requirement. The County's contribution will cease when the retiree becomes eligible for Medicare (or reaches the age where they would have had such benefits had they been qualified for Social Security). A separate audit report was not issued for the plan. Membership of the plan consisted of the following at December 31, 2011 the date of the latest actuarial valuation: Retirees receiving benefits 92 Active Plan Members: General Employees 639 Law Enforcement 189 Total 920 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 70 Attachment number 1 1 -3 Page 326