2010 Component Unit Financial Statements - Regional ...

REGIONAL TRANSPORTATION COMMISSION OF SOUTHERN NEVADA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
NOTE 10 - Defined Benefit Pension Plan (continued)
The RTC does not exercise any control over the System. Nevada Revised Statute 286.110 states
that: “Respective participating public employers are not liable for any obligation of the System.”
Benefits, as required by State statute, are determined by the number of years of accredited service at
the time of retirement and the member’s highest average compensation in any 36 consecutive
months. Benefit payments to which participants may be entitled under the System include pension,
disability, and death benefits. Benefits may only be amended through legislation.
Monthly benefit allowances for regular members are computed at 2.5% for service credits earned
prior to July 1, 2001, and 2.67% for service credits earned after July 1, 2001, of average
compensation (36 consecutive months of highest compensation) for each accredited year of service
prior to retirement up to a maximum of 90% of the average compensation for employees who entered
the system prior to July 1, 1985, and 75% for those entering after that date. The System offers
several alternatives to the unmodified service retirement allowance which, in general, allows the
retired employee to accept a reduced service retirement allowance, payable monthly during the
employee's life and various optional monthly payments to a named beneficiary after the employee's
death. Eligible employees are eligible for retirement benefits at age 65 with 5 years of service, at age
60 with 10 years of service and at any age with 30 years of service.
Contribution rates are established by NRS 286.410, which provides for yearly increases of up to 1%
until such time as the actuarially determined unfunded liability of the System is reduced to zero. The
RTC is obligated to contribute all amounts due under the System. The contribution rate for eligible
employees, based on covered payroll, for the year ended June 30, 2010 was 21.5% and for the years
ended June 30, 2009 and 2008 was 20.50%.
The RTC’s contributions to the plan for the years ended June 30, 2010, 2009, and 2008 were
$3,568,171, $3,341,119 and $3,248,490, respectively, equal to the required contributions for each
year.
An annual report containing financial statements and required information for the System may be
obtained by writing to PERS, 693 W. Nye Lane, Carson City, Nevada 89703-1599, or by calling (775)
687-4200.
NOTE 11 - Other Post-Employment Benefits (OPEB)
The RTC participates in Clark County's other postemployment benefits plan, a cost sharing, multiple
employer defined benefit plan, as well as the State of Nevada's Public Employee Benefit Plan
(PEBP), a cost-sharing multiple employer define benefit plan.
Plan Descriptions
In accordance with State statutes, retirees of RTC may continue insurance through existing plans of
insurance, if enrolled as an active employee at the time of retirement. Retirees are offered medical,
dental, prescription drugs, and life insurance benefits for themselves and their dependents. Retirees
may choose between the Clark County Self-Funded Group Medical and Dental Benefits Plan (Self-
Funded Plan) and an HMO Plan.
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