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CITY OF LA PORTE, TEXAS
<br />NOTES TO THE FINANCIAL STATEMENTS (continued)
<br />Note 11 - Post-employment Benefits (continued)
<br />Fiscal Year
<br />201220112010
<br />Annual Required Contribution (ARC)2,280,768$ 2,214,338$ 2,472,961$
<br />Interest on net pension obligation (NPO) 236,921 169,198 81,894
<br />Adjustment to ARC(219,505) (156,760) (75,874)
<br />Annual Pension Cost (APC)2,298,184 2,226,776 2,478,981
<br />Contributions(650,741) (721,830) (538,884)
<br />Change in NPO1,647,443 1,504,946 1,940,097
<br />NPO, beginning of the year5,264,905 3,759,959 1,819,862
<br />NPO, ending of the year6,912,348$ 5,264,905$ 3,759,959$
<br />Percentage of ARC contribution28.3%32.4%21.7%
<br />The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
<br />OPEB obligation for fiscal year 2012, 2011 and 2010 are as follows.
<br />Percentage of
<br />Annual OPEB
<br /> Annual OPEB
<br />Cost Net OPEB
<br /> Fiscal Year Ended Cost
<br />Contributed Obligation
<br />9/30/20102,478,981$ 21.74%3,759,959$
<br />9/30/20112,226,776 32.42%5,264,905
<br />9/30/20122,298,184 28.32%6,912,348
<br />Funded Status and Funding Progress. The funding status of the post employment medical plan as of
<br />the most recent actuarial valuation date is as follows:
<br />Unfunded (UAAL) as
<br />Actuarial a
<br />Accrued Percentage
<br /> Actuarial
<br /> Actuarial Valuation Date Actuarial Accrued Percentage Liability Annual Covered of Covered
<br />December 31, Value of Assets Liabilities Funded(UAAL) Payroll Payroll
<br />2010-$ 29,639,065 0%29,639,065$ 19,816,947$ 66.86%
<br />Actuarial valuations of an ongoing plan involve estimates of the value reported amounts and assumptions
<br />about the probability of occurrence of events far into the future. Examples include assumptions about
<br />future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded
<br />status of the plan and the annual required contributions of the employer are subject to continual revision
<br />as actual results are compared with past expectations and new estimates are made about the future. A
<br />schedule of funding progress presents multi-trend information about whether the actuarial value of plan
<br />assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The
<br />2010 actuarial valuation is the most recent actuarial valuation available.
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