Union Public Schools – Notes to Financial Statements Year Ended June 30, 2011 NOTE H--EMPLOYEE RETIREMENT SYSTEM--Continued Trend information for the District’s annual required contributions is as follows: Required Contribution Fiscal year 2009 2010 2011
$ $ $
Percentage Contributed
5,389,432 5,947,033 5,625,273
100% 100% 100%
Separately issued financial statements of the System can be obtained by contacting the Teachers’ Retirement System of Oklahoma at P.O. Box 53524, Oklahoma City, Oklahoma 73152, by calling (405) 521-2387, or at the TRS website at www.trs.state.ok.us. These stand-alone financial statements can be useful in assessing the System’s accumulation of sufficient assets to pay pension benefits as they become due and in reviewing historical trend information.
NOTE I--OTHER POST-EMPLOYMENT INSURANCE BENEFITS-HEALTH AND DENTAL INSURANCE PROGRAM District employees have the option of continuing health, vision and dental coverage at their own expense upon retirement if they are covered by an employment contract that provides for post-retirement benefits and who meets one of the following requirements: • • • •
Age 55 with 5 years of service Rule of 80 if hired before July 1, 1992 (combined age and service years) Rule of 90 if hired after July 1, 1992 (combined age and service years) 10 years of service
Retired employees may pay the same premium as the District pays for current employees. Funding Policy - Contribution requirements of the District are established and may be amended by the Board of Education. All contributions are made by the retirees. Benefits are funded under a “pay as you go” funding method; however expenses are recorded as benefits accumulate. Annual OPEB cost and net OPEB obligation - The District’s annual OPEB cost is calculated based on the annual required contribution of the District (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty (30) years.
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