FY 2013 Operating and Capital Budget - Metro Transit

Union Plans
Salaried Plan 788 O&M 788 Clerical IBEW
Actuarial valuation date Jun 01, 2010 Apr 01, 2010 Apr 01, 2010 Apr 01, 2010
Contributions
Employee none $ 1,887,988 $ 98,975 $ 52,741
Employer 2,803,934 4,953,503 223,550 122,475
Total contributions made $ 2,803,934 $ 6,841,491 $ 322,525 $ 175,216
Contribution rates (as percent
of covered payroll)
Employee 0.0% 3.6% 5.9% 1.8%
Employer 11.0% 9.4% 13.4% 4.2%
Employer Annual Pension Cost $ 2,803,934 $ 4,953,503 $ 223,550 $ 122,475
Actuarial cost method Projected Unit Entry Age Entry Age Entry Age
Credit Cost *
Amortization method 30 years, * Level dollar, Level dollar, Level dollar,
Level dollar, if fixed period fixed period fixed period
greater than $0
Closed Closed Closed Closed
Remaining amortization period na 23 years 24 years 25 years
Asset valuation method
Expected
Return Method
w/o Phase-in
Expected
Return Method
w/o Phase-in
Expected
Return Method
w/o Phase-in
Expected
Return Method
w/o Phase-in
Actuarial assumptions:
Investment rate of return 7.50% 7.25% 7.25% 7.25%
Inflation rate of return 3.50% 3.50% 3.50% 3.50%
Projected salary increases 4.50% 4.50% 4.50% 4.50%
Post-retirement benefit increases 0.00% 0.00% 0.00% 0.00%
* Effective Jun 01, 2004
Other Post-Employment Benefits
In addition to the pension benefits described above, Metro provides other post-employment
health care benefits to all employees who meet retirement requirements and provide an
employee share of premiums. The benefits for union retirees are determined by contractual
agreement and the benefits for salaried retirees represent a voluntary payment. As of June 30,
2011, 1,120 union and salaried retirees met those requirements.
Three plan options are offered, and retiree contributions are three-tiered based on retirement
date. The retiree contributions range from $2 per month Tier 1 Economy Plan coverage to
$304 per month for family Tier 3 Premium Plan coverage. Metro reimburses a minimum of
eighty percent of the amount of validated claims for medical and hospitalization costs
incurred by retirees and their dependents.
For each retiree eligible for Medicare, Metro’s Plan coordinates benefits with Medicare.
Expenditures for post-employment health care benefits are recognized as retirees report
claims and include a provision for estimated claims incurred but not yet reported (IBNR) to
Metro. In addition, some retirees are included in health maintenance organizations for which
Metro pays fixed premiums.
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