My WebLink
|
Help
|
About
|
Sign Out
Home
2013 CAFR
Roseville
>
Budget
>
2013 CAFR
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
3/9/2018 4:18:31 PM
Creation date
2/2/2018 12:04:59 PM
Metadata
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
138
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).
View images
View plain text
CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2013 <br />NOTE 6— OTHER POST-EMPLOYMENT BENEFITS (Continued) <br />G. Actuarial Methods and Assumptions <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 the health care cost trend. Amounts determined <br />regarding the funded status of the plan and the annual required contributions (ARC) of the employer are <br />subject to continual revision as actual results are compared with past expectations and new estimates are <br />made about the future. The schedule of funding progress, presented as required supplementary <br />information following the notes to financial statements, presents multi-year trend information that shows <br />whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial <br />accrued liabilities for benefits. <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 <br />to reduce the effect 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, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The <br />actuarial assumptions included a 4.5% investment rate of return (net of investment expenses), salary <br />increases of 2.0°10 (only used to bring salaries into the valuation year) and an initial annual health care <br />cost trend rate of 8% reduced by .5% each year to arrive at an ultimate health care cost trend rate of 5.0% <br />over 6 years. The health care cost trend rate includes a 2.5°Io inflation rate. The actuarial value of assets <br />was $0. The plan's unfunded actuarial accrued liabiliry is being amortized using the level percentage of <br />projected payroll method over 30 years on a closed basis. The remaining amortization period at <br />December 31, 2010, was 27 years. <br />NOTE 7— GASB STATEMENTS ISSUED BUT NOT YET IMPLEMENTED <br />GASB Statement No. 68 replaces the requirements of Statement No. 27, Accounting for Pensions by State <br />and Local Governme�tal Employers and Statement No. 50, Pension Disclosures, as they relate to <br />governments that provide pensions through pension plans administered as trusts or similar arrangements that <br />meet certain criteria. Statement No, 68 requires governments providing defined benefit pensions to recognize <br />their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively <br />and comparably measure the annual costs of pension bene�its. <br />75 <br />
The URL can be used to link to this page
Your browser does not support the video tag.