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4 <br />Estimated Annual Required Contribution <br />The table below shows the calculation of the Annual Required <br />Contribution toward postretirement medical benefits under GASB 45. Note <br />that the ARC shown below includes the pay -as- you -go cost for current <br />retirees, so the net effect of GASB 45 on the City is the excess of the <br />ARC over the pay -as- you -go cost. <br />Results for Fiscal Year 2008 <br />Unfunded Plan Funded Plan <br />Normal Cost for 2008 <br />Beginning of Year $22,040 $15,477 <br />Adjusted to Mid -Year $22,481 $15,941 <br />Percent of Payroll N/A N/A <br />Funded Status at January 1, 2008 <br />Actuarial Accrued liability (AAL) $329,191 $272,446 <br />Value of Plan Assets $0 $0 <br />Unfunded Actuarial Accrued Liab.(UAAL) $329,191 $272,446 <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 $19,233 <br />Percent of Payroll N/A N/A <br />Annual Required Contribution (ARC) for 2008 <br />Normal Cost $22,481 $15,941 <br />Amortization of UAAL $18,671 $19,233 <br />Total ARC $41,152 $35,174 <br />Percent of Payroll N/A N/A <br />Actuarial Cost Method Projected Unit Projected Unit <br />Credit Credit <br />Actuarial Assumptions <br />Investment Rate of Return <br />Projected Salary increases <br />4.0% 6.00 <br />3.0% 3.0% <br />City of Lino Lakes Minnesota, Retiree Health Benefit Plan - November 2008 <br />