AG 2010 12 20 - Laserfiche WebLink

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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2010 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 % of Retiree Health and Membership to LGERS Insurance the County Pays Qualified retirement with 10 or more years of service with Cabarrus County 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 % of Retiree Health and Membership to LGERS Insurance the County Pays Qualified retirement with 25 or more years of service with Cabarrus County 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, 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 $676,712 or 2.2% 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 1.2% 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 $43,900 for the current year. There were no other contributions made by employees, except for dependent coverage in the amount of $777,659. 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. 66 G -2 Page 554