As of June 30, 1994, the unfunded pension benefit obligation of the Plan is as follows (amounts expressed in
thousands):
Pension benefit obligation:
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving
benefits............................................................................... $ 40,472
Current employees:
Employer — financed vested.......................................... 58,945
Employer—financed non-vested.................................. 3,891
Total pension benefit obligation................................ 103,308
Net assets available for benefits, at cost
(market value $17,592)........................................................ 17,256
Unfunded pension benefit obligation...........................___$ 86,052
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 $ 8,452,000 (9.6% of covered payroll) for fiscal year 1994 were
made in accordance with actuarially determined contribution requirements based on an actuarial valuation
performed as of June 30,1993. This amount consisted of $2,245,000 normal cost and $6,207,000 amortization of the
unfunded actuarial accrued liability (2.6% and 7.0%, respectively, of covered payroll).
The liquidation period for the unfunded actuarial accrued liabilities (as provided by law) is 26 years from June
30, 1994. 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 1994 was based on the same actuarial
assumptions, actuarial funding method, and other significant factors used to determine pension contribution
requirements in the previous year. However, the benefit structure for the pension contribution changed from the
previous year. Participants are eligible for retirement at age 65 with 5 years of credited service in current year as
opposed to 10 years of service in prior year. Participants with 30 years of credited service are eligible for
retirement at age 55 as opposed to 60 in the prior year. These benefit changes increased the accrual factor from
1.1% in the prior year to 1.3% in current year.
Five-year historical trend information for the Plan (amounts expressed in thousands):
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
Unfunded
Pension Benefit
|
(7)
|
(8)
Employer
Contributions
|
|
|
|
|
Unfunded
|
|
Obligation as
|
|
as a Percentage
|
|
Net Assets
|
|
|
Pension
|
|
a Percentage
|
|
of Annual
|
|
Available for
|
Pension
|
Percentage
|
Benefit
|
Annual
|
of Covered
|
|
Covered
|
Fiscal
|
Benefits
|
Benefit
|
Funded
|
Obligation
|
Covered
|
Payroll
|
Employer
|
Payroll
|
Year
|
at cost
|
Obligation
|
(1)/(2)
|
(2)-(1)
|
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
|
1994
|
17,256
|
103,308
|
16.7
|
86,052
|
88,491
|
97.2
|
8,452
|
9.6
|
Trend information for the Plan prior to fiscal year 1990 is unavailable.
65
|
![clear space](../../../images/clear.gif) |