Funding Status and Progress:
The fiscal year 1993 pension benefit obligation was determined as a part of an actuarial valuation as of June
30, 1993. Significant actuarial assumptions used include (a) a rate of return on the investment of present and
future assets of 7.5% per year compounded annually, (b) projected salary increases of 5.75% per year
compounded annually, and (c) postretirement benefit increases of 3% of the original benefit amount effective
August 1,1991.
As of June 30,1993, the unfunded pension benefit obligation (i.e. pension obligation less net assets available
for benefits) of the Plan was as follows (amounts expressed in thousands):
Pension benefit obligation:
|
|
Retirees and beneficiaries currently receiving benefits and terminated employees not yet
|
|
receiving benefits ............................................................
|
$30,731
|
Current employees:
|
|
Employer— financed vested ....................................................
|
45,943
|
Employer— financed non-vested ................................................
|
18,358
|
Total pension benefit obligation ...............................................
|
95,032
|
Net assets available for benefits, at cost (market value is $13,447) ........................
|
12,884
|
Unfunded pension benefit obligation .............................................
|
$82,148
|
Contribution required and contribution made:
The Administration's retirement contributions are appropriated annually, based upon actuarial valuation. In
this regard, the Plan has engaged an independent firm of consulting actuaries to prepare annual actuarial
valuations and perform various actuarial consulting services. Effective January 1, 1990, in accordance with the
law governing the Plan, all benefits of the Plan are funded in advance. The entry age normal cost method is the
actuarial cost method used to determine the employer's normal and accrued liability contribution rates and the
unfunded actuarial accrued liability.
Employer contributions to the Plan totalling $8,467,000 (9.7% of covered payroll) for fiscal year 1993 were
made in accordance with actuarially determined contribution requirements based on an actuarial valuation
performed as of June 30,1992. This amount consisted of $1,652,000 normal cost and $6,815,000 amortization of
the unfunded actuarial accrued liability (1.9% and 7.8%, respectively, of covered payroll).
The liquidation period for the unfunded actuarial accrued liabilities (as provided by law) is 27 years from
June 30,1993. Significant actuarial assumptions used to compute contribution requirements are the same as those
used to compute the pension benefit obligation.
The computation of the pension contribution requirements for fiscal year 1993 was based on the same
actuarial assumptions, benefit provisions, actuarial funding method, and other significant factors used to
determine pension contribution requirements in the previous year.
Four-year historical trend information for the Plan (amounts expressed in thousands):
|
|
|
|
(4)
|
|
(6)
Unfunded
Pension Benefit
|
|
(8)
Employer
|
|
(1)
|
|
|
Unfunded
|
|
Obligation as
|
|
Contributions
|
|
Net Assets
|
(2)
|
(3) .
|
Pension
|
(5)
|
a Percentage
|
|
as a Percentage
|
|
Available for
|
Pension
|
Percentage
|
Benefit
|
Annual
|
of Covered
|
(?)
|
of Annual
|
Fiscal
|
Benefits
|
Benefit
|
Funded
|
Obligation
|
Covered
|
Payroll
|
Employer
|
Covered Payroll
|
Year
|
at Cost
|
Obligation
|
(D-(2)
|
(2)-(D
|
Payroll
|
(4)-(5)
|
Contributions
|
(7)-(5)
|
1990 ..............
|
$ 1,611
|
$74,745
|
2.2%
|
$73,134
|
$75,554
|
96.8%
|
$5,408
|
7.2%
|
1991 ..............
|
5,792
|
87,586
|
6.6
|
81,794
|
77,451
|
105.6
|
7,677
|
9.9
|
1992 ..............
|
8,481
|
92,718
|
9.1
|
84,237
|
80,700
|
104.4
|
7,327
|
9.1
|
1993 ..............
|
12,884
|
95,032
|
13.6
|
82,148
|
87,134
|
94.3
|
8,467
|
9.7
|
Trend information for the Plan prior to fiscal year 1990 is unavailable.
60
|
|