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ESTIMATE
<br />o For employees retiring from service after January 1, 2009, the City
<br />shall pay for each year of service, four percent (4 of the City's
<br />monthly premium based on the lowest HMO medical plan (instead of
<br />Kaiser) for the employee and one dependent. Effective July 1, 2009
<br />co -pays for office visits and prescription drugs were increased.
<br />Effective July 1, 2010, the City contribution toward any increase in
<br />medical plan premiums will also be limited to a maximum of 15
<br />International Association of Firefighters (IAFF)
<br />o For employees retiring from service after January 1, 2008, the City
<br />shall pay for each year of service, four percent (4 of the City's
<br />monthly premium based on the lowest HMO medical plan (instead of
<br />Kaiser) for the employee and one dependent. Also, effective January
<br />1, 2008 co -pays for office visits and prescription drugs were increased.
<br />Effective July 1, 2009, the City contribution toward any increase in
<br />medical plan premiums will also be limited to a maximum of 15
<br />Current OPEB Liabilities
<br />Notwithstanding technical accounting requirements, GASB 45 requires Pleasanton to
<br />utilize acceptable actuarial standards to determine its OPEB liability, to identify the
<br />amount of funding, if any, that will be applied to meet the total OPEB obligation and to
<br />select an investment vehicle for funding its contributions to the OPEB. One important
<br />step in meeting the GASB ruling is the identification of existing reserves that may be
<br />applied to meeting the City's OPEB. As indicated in Table 1, the City estimates a June
<br />30, 2009, balance of $48.2 million that is available to meet post retirement health costs.
<br />A summary of these reserves is as follows.
<br />June 30, 2007 Balance
<br />2007 -2008 Contributions
<br />2007 -2008 Interest Income
<br />Pay -as- you -go benefits
<br />June 30, 2008 Balance
<br />June 30, 2008 Balance
<br />2008 -2009 Contributions
<br />2008 -2009 Interest Income
<br />Pay -as- you -go benefits
<br />June 30, 2009 Balance
<br />Table 1
<br />Pro'ected Retiree Insu rance Rese rve Fund (1)
<br />Retiree Insurance
<br />Reserve
<br />$25,669,133
<br />4,628,400
<br />1,502,489
<br />(1,219,382)
<br />$30,580,640
<br />Retiree Insurance
<br />Reserve
<br />$30,580,640
<br />4,630,320
<br />1,100,000
<br />(1,170,348)
<br />$35,140,612
<br />1. for all non -fire personnel and employees of the LPFD.
<br />Page 5 of 13
<br />LPFD Reserve
<br />$10,873,045
<br />1,400,000
<br />618,512
<br />(310,083)
<br />$12,581,474
<br />LPFD Reserve
<br />$12,581,474
<br />700,000
<br />430,000
<br />(623,868)
<br />$13,087,606
<br />Total
<br />$36,542,178
<br />6,028,400
<br />2,121,001
<br />(1,529,465)
<br />$43,162,114
<br />Total
<br />$43,162,114
<br />5,330,320
<br />1,530,000
<br />(1,794,216)
<br />$48,228,218
<br />
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