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Cabarrus County, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2010 The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2008 was 30 years. 7. Pension Plan and Benefit Obligations a. Local Governmental Employees' Retirement System Plan Description. Cabarrus County and the Alliance contribute to the statewide Local Governmental Employees' Retirement System ( LGERS), a cost - sharing multiple - employer defined benefit pension plan administered by the State of North Carolina. LGERS provides retirement and disability benefits to plan members and beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Local Governmental Employees' Retirement System 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 LGERS. 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. Plan members are required to contribute six percent of their annual covered salary. The County and the Alliance are required to contribute at an actuarially determined rate. For the County, the current rate for employees not engaged in law enforcement and for law enforcement officers is 4.88% and 4.86% respectively, of annual covered payroll. For the Alliance, the current rate for employees is 4.86% of annual covered payroll. The contribution requirements of members and of Cabarrus County and the Alliance are established and may be amended by the North Carolina General Assembly. The rates have been amended effective July 1, 2010 and thereafter for several years due to the loss in the market value which occurred in the fall of 2008. The County's contribution to LGERS for the years ended June 30, 2010, 2009 and 2008 were $1,822,022, $1,796,672 and $1,623,545, respectively. The Alliance's contributions to LGERS for the years ended June 30, 2010, 2009 and 2008, were $466,969, $453,071 and $430,211 respectively. The contributions made by the County and the Alliance equaled the required contributions for each year. b. Law Enforcement Officers' Special Separation Allowance Plan Description Cabarrus County administers a public employee retirement system (the "Separation Allowance "); a single - employer defined benefit pension plan that provides retirement benefits to the County's qualified sworn law enforcement officers. The Separation Allowance is equal to .85 percent of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Separation Allowance is reported in the County's report as a pension trust fund. No stand -alone financial report exists. All full -time County law enforcement officers are covered by the Separation Allowance. At December 31, 2009, the Separation Allowance's membership consisted of: Summary of Significant Accounting Policies: Retirees receiving benefits 22 Terminated plan members entitled to but not yet receiving benefits - Active plan members 195 Total 217 Basis of Accounting. Financial statements for the Separation Allowance are prepared using the accrual basis of accounting. Employer contributions to the plan are recognized when due and when the County has made a formal commitment to provide the contributions. Benefits are recognized when due and payable in accordance with the terms of the plan. Method used to Value Investments. Investments are reported at fair value. Short-term money market debt instruments, deposits, and repurchase agreements, are reported at cost or amortized cost, which approximates fair value. Certain longer term United States Government and United States Agency securities are valued at the last reported sales price. 68 G -2 Page 556