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Indian River County, Florida
<br />Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2014
<br />NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
<br />C. Annual OPEB Cost and Net OPEB Obligation - Continued
<br />FY 2013/2014
<br />Annual Required Contribution $ 2,835,072 $
<br />Interest on Net OPEB Obligation (18,036)
<br />Adjustment to Annual Required Contribution 24,230
<br />Annual OPEB Cost (expense) 2,841,266
<br />Contributions (net of adjustments)* (3,336,027)
<br />Change in Net OPEB Obligation (494,761)
<br />Net OPEB Obligation — beginning of year (300,606)
<br />Net OPEB Obligation — end of year $ (795,367) $
<br />Percentage of Annual OPEB Cost Contributed 117.41 %
<br />*Retiree adjustments are comprised of the actual
<br />FY 2012/2013 FY 2011/2012
<br />2,965,251 $
<br />(20,909)
<br />26,830
<br />2,971,172
<br />(2,950,097)
<br />2,828,452
<br />(12,323)
<br />14,075
<br />2,830,204
<br />(2,962,301)
<br />21,075 (132,097)
<br />(321,681) (189,584)
<br />(300,606) $ (321,681)
<br />99.29 % 104.67%
<br />amount withdrawn from the Trust plus premiums
<br />collected and less claims paid. For fiscal year 2014, these adjustments amounted to (590,852). For fiscal
<br />years 2013 and 2012, these adjustments totaled ($15,154) and $13,640 respectfully.
<br />D. Funded Status and Funding Progress
<br />The Schedule of Funding Progress and Schedule of Employer Contributions, presented as required
<br />supplementary information immediately following the County Notes to the Financial Statements (on
<br />page 101), presents multi-year trend regarding liabilities, funding, and payroll. The data also reflects
<br />whether the actuarial value of the plan assets is increasing or decreasing over time relative to the
<br />actuarial accrued liabilities for benefits. This information includes the current and past three actuarial
<br />valuations and seven years of funding data.
<br />Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
<br />assumptions about the probability of occurrence of events into the future. Examples include
<br />assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
<br />regarding the funded status of the plan and the annual required contributions of the employer are subject
<br />to continual revision as actual results are compared with past expectations and new estimates are made
<br />about the future.
<br />E. Actuarial Methods and Assumptions
<br />Projections of benefits for financial reporting purposes are based on the benefits provided under terms of
<br />the substantive plan (the plan as understood by the employer and the plan members) in effect at the time
<br />of each valuation and on the pattern of sharing of costs between the employer and plan members to that
<br />point. The projection of benefits for financial reporting purposes does not explicitly incorporate the
<br />potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
<br />employer and plan members in the future. Actuarial calculations reflect a long-term perspective.
<br />Consistent with that perspective, actuarial methods and assumptions used include techniques that are
<br />designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
<br />value of assets.
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