My WebLink
|
Help
|
About
|
Sign Out
Home
Search
Comprehensive Annual Financial Report 12/31/2014
LinoLakes
>
Finance
>
Annual Financial Statements
>
Comprehensive Annual Financial Report 12/31/2014
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
6/14/2018 2:56:48 PM
Creation date
7/6/2017 8:10:58 AM
Metadata
Fields
Template:
Finance Dept
Finance Category
Publications & Reports
Finance Document Folder
Annual Financial Reports
Finance Number Identifier
Comprehensive Annual Financial Report
Date
12/31/2014
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
153
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
Show annotations
View images
View plain text
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2014 <br />Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) <br />D. FUNDED STATUS AND FUNDING PROGRESS <br />As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued <br />liability (UAAL) was $547,626. The annual payroll for active employees covered by the plan in the <br />actuarial valuation was $5,009,531 for a ratio of UAAL to covered payroll of 10.9%. <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 far into the future. Examples include <br />assumptions about future employment, mortality, and healthcare cost trends. Amounts determined <br />regarding the funded status of the plan and the annual required contributions of the employer are subject to <br />continual revision as actual results are compared with past expectations and new estimates are made about <br />the future. The schedule of funding progress, presented as required supplementary information following <br />the notes to the financial statements, presents multiyear trend information about whether the actuarial value <br />of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. <br />E. ACTUARIAL METHODS AND ASSUMPTIONS <br />Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as <br />understood by the employer and plan members) and include the types of benefits provided at the time of <br />each valuation and the historical pattern of sharing of benefit costs between the employer and plan <br />members to that point. The actuarial methods and assumptions used include techniques that are designed to <br />reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, <br />consistent with the long-term perspective of the calculations. <br />In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The <br />actuarial assumptions included a 1% investment rate of return (net of administrative expenses), which is a <br />blended rate of the expected long-term investment returns on plan assets and on the employer's own <br />investments calculated based on the funded level of the plan at the valuation date. The initial healthcare <br />trend rate was 8%, decreasing to an ultimate rate of 3% after six years. The UAAL is being amortized as a <br />level percentage of projected payrolls on an open basis. The remaining amortization period at December <br />31, 2014 was not to exceed 30 years. <br />59 <br />
The URL can be used to link to this page
Your browser does not support the video tag.