Laserfiche WebLink
6 <br />Effect of Alternative Funding Method <br />The table below shows the calculation of the Annual Required <br />Contribution toward postretirement medical benefits under GASB 45 using <br />the entry age normal funding method. Note that the ARC shown below <br />includes the pay -as- you -go cost for current retirees, so the net effect <br />of GASB 45 on the City is the excess of the ARC over the pay -as- you -go <br />cost. <br />Actuarial Cost Method <br />Results for Calendar Year 2008 <br />Projected Unit Entry Age <br />Credit Normal <br />Normal Cost for 2008 <br />Beginning of Year $22,040 $26,667 <br />Adjusted to Mid -Year $22,481 $27,200 <br />Percent of Payroll N/A N/A <br />Funded Status at January 1, 2008 <br />Actuarial Accrued liability (AAL) $329,191 $361,716 <br />Value of Plan Assets $0 $0 <br />Unfunded Actuarial Accrued Liab.(UAAL) $329,191 $361,716 <br />UAAL Amortization for 2008 <br />Amortization Method Level Dollar Level Dollar <br />Amortization Period 30 Years 30 Years <br />Amortization of UAAL, Mid -Year $18,671 $20,515 <br />Percent of Payroll N/A N/A <br />Annual Required Contribution (ARC) for 2008 <br />Normal Cost $22,481 $27,200 <br />Amortization of UAAL $18,671 $20,515 <br />Total ARC $41,152 $47,716 <br />Percent of Payroll N/A N/A <br />Actuarial Assumptions <br />Investment Rate of Return <br />Projected Salary increases <br />4.0% 4.0% <br />3.0% 3.0% <br />City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 <br />