FY2016 CCDOA Financial Report as of 6302016.pdf - page 80

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
67
Public Employee Benefit Plan
901 South Stewart Street, Suite 1001
Carson City, Nevada 89701
(800) 326-5496
Funding Policy and Annual Other Postemployment Benefit Cost
For the Self Funded Plan and HPN, contribution requirements of plan members and the employer are
established and may be amended through negotiations between the various unions and the
governing bodies of the employers.
The Department pays approximately 90 percent of premiums for active employee coverage, an
average of $7,983 per active employee for the year ended June 30, 2015. Retirees pay the entire cost
of their premium. Active and retiree loss experience is combined to create a single, blended premium
for each level of coverage (member only, member plus spouse, member plus children, or family), as
required by State law. This combining of loss experience creates an implicit subsidy to the retirees who
would otherwise pay higher premiums if their loss experience were rated separately.
The Department is required to pay the PEBP an explicit subsidy, based on years of service, for retirees
who have enrolled in this plan. In 2016, retirees were eligible for a subsidy of $319 per month after five
years of service and up to $(160) per month after 20 years of service with a Nevada state or local
government entity. The subsidy is set by the State Legislature.
The annual OPEB cost for each program is calculated based on the annual required contribution
("ARC") of the employer, an amount actuarially determined in accordance with the parameters of
GASB Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions
. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal costs each year and to amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years. The Department’s annual OPEB cost for the
current year and the related information for each plan are as follows:
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