Plan Description:
The Plan provides retirement (normal and early), death and disability benefits. Members may retire with full
benefits at age 65 with five years of credited service or age 55 with 30 years of credited service. The annual normal
retirement benefit is 1.3% of final average compensation multiplied by credited service, with minimum and
maximum benefit limitations. Participants are fully vested after five years of credited service.
There were no investments with parties related to the Plan.
Funding Status and Progress:
The fiscal year 1995 pension benefit obligation was determined as a part of an actuarial valuation as of June 30,
1995. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future
assets of 7.5% per year, (b) projected salary increases for inflation of 5.75% per year, (c) projected salary increases
for seniority and merit of .94% to 6.82% per year and (d) postretirement benefit increases of 3% of the original
benefits amount effective August 1, 1991.
As of June 30, 1995, the unfunded pension benefit obligation of the Plan is as follows (amounts expressed in
thousands).
Pension benefit obligation:
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Retirees and beneficiaries currently receiving benefits
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and terminated employees not yet receiving
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benefits................................................................................
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$50,662
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Current employees:
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Employer — financed vested...........................................
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61,126
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Employer — financed non-vested..................................
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4,677
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Total pension benefit obligation..................................
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116,465
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Net assets available for benefits, at cost
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(market value $25,229)........................................................
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23,790
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Unfunded pension benefit obligation ...........................
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$92,675
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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 $11,323,000 (12.3% of covered payroll) for fiscal year 1995 were
made in accordance with actuarially determined contribution requirements based on an actuarial valuation
performed as of June 30,1993. This amount consisted of $2,317,000 normal cost and $9,006,000 amortization of the
unfunded actuarial accrued liability (2.5% and 9.7%, respectively, of covered payroll).
The liquidation period for the unfunded actuarial accrued liabilities (as provided by law) is 25 years from June
30, 1995. 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 1995 was based on the same actuarial
assumptions, actuarial funding method, and other significant factors used to determine pension contribution
requirements in the previous year. Participants are eligible for retirement at age 65 with 5 years of credited service
in the current year as opposed to 10 years of service in the 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.
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