AG 2007 05 21 - Laserfiche WebLink

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PIEDMONT AREA MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 NOTE 2 DETAIL NOTES ON ALL FUNDS (CONTINUED) 2. Pension Plan Obligations a. Retirement Plan Plan Description. The Authority has a defined contribution retirement plan covering all eligible employees working at least 1,000 hours per year administered through Cigna Life Insurance Company. The plan provides retirement and disability benefits to plan members and beneficiaries. Additional information on the plan may be obtained by writing to Cigna Life Insurance Company, 680 Town Clock Plaza, Dubuque, IA 52001, or by calling (319) 557-6827. Funding Policy. The plan is optional and contributory by the employees. The Authority matches employee contributions dollar-for-dollar up to three percent of compensation. The Authority may elect to contribute additional amounts on behalf of eligible employees based on compensation and years of service. The Authority's contributions to the plan for the years ended June 30, 2006, 2005, and 2004, were $439,706, $432,123, and $698,013, respectively. The contributions made by the Authority equaled the required contributions for each year. 3. Other Post-Employment Benefits Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Authority makes health care benefits available to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium plus 2% administrative fee is paid-in-full monthly by the insured. This program is offered for a duration of 18 months after the employee's termination date. There is no associated cost to the Authority under this program, and there are only 5 participants as of June 30, 2006. 4. Risk Management The Authority is exposed to various risks of losses related to torts: malpractice; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority carries commercial insurance to cover substantially ail risks of loss. There have been no significant reductions in insurance coverage from the previous year and settled claims have not exceeded coverage in any of the past three fiscal years. 5. Contingent Liabilities At June 30, 2006, the Authority was a defendant to various lawsuits. In the opinion of the Authority's management, the ultimate effect of these legal matters will not have a material adverse effect on the Authority's financial position. (24) L~