Comprehensive Annual Financial Report June 30, 2011 - Western ...

WESTERN VIRGINIA WATER AUTHORITY
Notes to Financial Statements
as of June 30, 2011 and 2010 (Continued)
Note 7—Other Post-Employment Benefits:
A. Plan Description
The Authority administers a single-employer healthcare plan (“the Retiree Plan”). The plan provides for
participation by eligible retirees of the Authority and their dependents in the health insurance programs
available to Authority employees. The Retiree Health Plan will provide retiring employees the option to
continue health insurance offered by the Authority. An eligible Authority retiree may receive this benefit
until the retiree is eligible to receive Medicare. To be eligible for this benefit a retiree must meet the
following criteria:
The retiree must be a full time employee retiring on or after July 1, 2004.
The employee must be eligible to retire with the Virginia Retirement System (VRS) or the current
City of Roanoke retirement plan.
Active employees must have at least 10 years of service with combined VRS or City of Roanoke
and/or the Water Authority, with a minimum of five continuous years of service with the Water
Authority and must be hired before July 1, 2010.
Disabled employees are eligible after they meet retirement eligibilities
The employee must be enrolled in the Water Authority medical coverage plan for the entire year
prior to retirement to receive Water Authority contributions.
The benefits, employee contributions and the employer contributions are governed by the Board of
Directors of the Western Virginia Water Authority and can be amended through Board action. The
Retiree Health Plan does not issue a publicly available financial report.
B. Funding Policy
The Authority currently pays for post-employment health care benefits on a pay-as-you-go basis for seven
(7) retirees. The Authority currently has 253 employees that are eligible for the program. In addition,
retirees pay a percentage of the medical premium which ranged from 8.5% to 38.3%. As of July 1, 2010,
the average rates were as follows:
Participants
Total premium
Employee only $ 476.00
Employee and Spouse 826.00
Employee and Child 826.00
Employee and Family 1,205.00
The Authority is required to contribute the annual required contribution of the employer (ARC), an
amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each
year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed
thirty years.
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