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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Year Ended June 30, 2011
<br />Annual Pension Cost and Net Pension
<br />Obligation. The County's annual pension
<br />cost and net pension obligation to the
<br />Separation Allowance for fiscal year
<br />ending June 30, 2011 are shown at right:
<br />Annual required contribution
<br />$ 551,536
<br />Interest on net pension obligation
<br />10,645
<br />Adjustment to annual required contribution
<br />(22,455)
<br />Annual pension cost
<br />539,726
<br />Contributions made
<br />(412,065)
<br />Increase in net pension obligation
<br />127,661
<br />Net pension obligation beginning of year
<br />212,897
<br />Net pension obligation end of year
<br />$ 340,558
<br />Funded Status and Funding Progress. As of December 31, 2010, the most recent actuarial valuation date, the plan
<br />was 18.50 percent funded. The actuarial accrued liability for benefits was $3,178,770, and the actuarial value of
<br />assets was $588,157, resulting in an unfunded actuarial accrued liability (UAAL) of $2,590,613. The covered
<br />payroll (annual payroll of active employees covered by the plan) was $8,514,139 and the ratio of the UAAL to the
<br />covered payroll was 30.43 percent.
<br />The schedule of funding progress, presented as required supplementary information following the notes to the
<br />financial statements, presents multiyear trend information about whether the actuarial value of plan assets are
<br />increasing or decreasing over time relative to the actuarial accrued liability for benefits.
<br />c. Supplemental Retirement Income Plan (401k)
<br />Plan Description. The County contributes to the Supplemental Retirement Income Plan (Plan), a defined
<br />contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan
<br />also provides retirement benefits to law enforcement officers employed by the County. Article 5 of G.S. Chapter 135
<br />assigns the authority to establish and amend benefit provision to the North Carolina General Assembly. The
<br />Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual
<br />Financial Report (CAFR) for the State of North Carolina. The State's CAFR includes the pension trust fund
<br />financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement
<br />Income Plan for Law Enforcement Officers. That report may be obtained in writing to the Office of the State
<br />Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699 -1410, or by calling (919) 981 -5454.
<br />Funding Policy. Article 12E of G.S. Chapter 143 requires the County to contribute each month an amount equal to
<br />five percent of each law enforcement officer's salary, and all amounts contributed are vested immediately. Also, the
<br />law enforcement officers may make voluntary contributions to the plan. The County has chosen to extend this
<br />benefit to all its full and part -time (who are eligible for North Carolina Local Governmental Employees' Retirement
<br />System) employees. Contributions by Cabarrus County for the year ended June 30, 2011 were $2,530,488 which
<br />consisted of $1,840,856 from the County and $689,632 from the employees. In February 2009, the Alliance
<br />decided to discontinue the employer's contribution to the 401(k) plan. Participating Alliance employees made
<br />contributions of $279,520 for the year ended June 30, 2011.
<br />d. Register of Deeds' Supplemental Pension Fund
<br />Plan Description. Cabarrus County also contributes to the Registers of Deeds' Supplemental Pension Fund (Fund),
<br />a noncontributory, defined contribution plan administered by the North Carolina Department of State Treasurer. The
<br />Fund provides supplemental pension benefits to any eligible county register of deeds who is retired under the Local
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<br />1 -3 Page 195
<br />3 Year Trend Information
<br />Fiscal Year
<br />Annual Pension
<br />Percentage of
<br />Net Pension
<br />Ended
<br />Cost (APC)
<br />APC Contributed
<br />Obligation
<br />6/30/2009
<br />$345,999
<br />101.35%
<br />$161,605
<br />6/30/2010
<br />405,103
<br />87.34%
<br />212,897
<br />6/30/2011
<br />539,726
<br />76.35%
<br />340,558
<br />Funded Status and Funding Progress. As of December 31, 2010, the most recent actuarial valuation date, the plan
<br />was 18.50 percent funded. The actuarial accrued liability for benefits was $3,178,770, and the actuarial value of
<br />assets was $588,157, resulting in an unfunded actuarial accrued liability (UAAL) of $2,590,613. The covered
<br />payroll (annual payroll of active employees covered by the plan) was $8,514,139 and the ratio of the UAAL to the
<br />covered payroll was 30.43 percent.
<br />The schedule of funding progress, presented as required supplementary information following the notes to the
<br />financial statements, presents multiyear trend information about whether the actuarial value of plan assets are
<br />increasing or decreasing over time relative to the actuarial accrued liability for benefits.
<br />c. Supplemental Retirement Income Plan (401k)
<br />Plan Description. The County contributes to the Supplemental Retirement Income Plan (Plan), a defined
<br />contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan
<br />also provides retirement benefits to law enforcement officers employed by the County. Article 5 of G.S. Chapter 135
<br />assigns the authority to establish and amend benefit provision to the North Carolina General Assembly. The
<br />Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual
<br />Financial Report (CAFR) for the State of North Carolina. The State's CAFR includes the pension trust fund
<br />financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement
<br />Income Plan for Law Enforcement Officers. That report may be obtained in writing to the Office of the State
<br />Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699 -1410, or by calling (919) 981 -5454.
<br />Funding Policy. Article 12E of G.S. Chapter 143 requires the County to contribute each month an amount equal to
<br />five percent of each law enforcement officer's salary, and all amounts contributed are vested immediately. Also, the
<br />law enforcement officers may make voluntary contributions to the plan. The County has chosen to extend this
<br />benefit to all its full and part -time (who are eligible for North Carolina Local Governmental Employees' Retirement
<br />System) employees. Contributions by Cabarrus County for the year ended June 30, 2011 were $2,530,488 which
<br />consisted of $1,840,856 from the County and $689,632 from the employees. In February 2009, the Alliance
<br />decided to discontinue the employer's contribution to the 401(k) plan. Participating Alliance employees made
<br />contributions of $279,520 for the year ended June 30, 2011.
<br />d. Register of Deeds' Supplemental Pension Fund
<br />Plan Description. Cabarrus County also contributes to the Registers of Deeds' Supplemental Pension Fund (Fund),
<br />a noncontributory, defined contribution plan administered by the North Carolina Department of State Treasurer. The
<br />Fund provides supplemental pension benefits to any eligible county register of deeds who is retired under the Local
<br />73 Attachment number 1
<br />1 -3 Page 195
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