AG 2011 12 19 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2011 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, 2008, the date of the latest actuarial valuation: Retirees receiving benefits 80 Active Plan Members: General Employees 588 Law Enforcement 180 Total 848 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 basis. In the future, employees and retirees may be required to participate in premiums for basic group health and life insurance plans. The plan was established and may be amended by the Board of Commissioners. The current ARC rate is 8.04 % of annual covered payroll (5.26% normal cost and 2.78% accrued liability). The County contributed $656,130 or 1.7% of annual covered payroll for the current fiscal year. The County is self insured for healthcare coverage. The County's required contributions for employees not engaged in law enforcement and for law enforcement officers represented 1.1 % and .06% of covered payroll. Contributions of $50 per month were made by employees and retirees who currently use tobacco products and have not signed a non use tobacco certification. These contributions were $40,100 for the current year. There were no other contributions made by employees, except for dependent coverage in the amount of $814,490. Summary of Significant Accounting Policies. Postemployment expenditures for former employees not engaged in law enforcement are made from the General Fund. This fund is maintained on a modified accrual basis of accounting. No funds are set aside to pay benefits and administrative costs. These expenditures are paid as they come due. Annual OPEB Cost and Net Pension Obligation. The County's annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the County's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County's net OPEB obligation for the healthcare benefits: Annual Required Contribution Interest on Net OPEB Obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation, beginning of year Net OPEB obligation, end of year 2011 $ 2,513,177 190,609 (178,696 2,525,090 (656,130) 1,868,960 4,765,234 6.634.194 70 Attachment number 1 1 -3 Page 192