Accreditation - Hartnell College!!

III.D.3.c
The institution plans for and allocates appropriate resources for the payment of liabilities
and future obligations, including Other Post-Employment Benefits (OPEB), compensated
absences, and other employee related obligations.
Descriptive Summary
In accordance with GASB Statement No. 16, accumulated unpaid employee vacation benefits
are recognized as accrued liabilities of the District while unused sick leave are accumulated
the employees do not gain vested right and therefore sick leave benefits are not accrued as a
liability.
In addition, the District has accrued liability for the remaining unpaid portion of the early
Retirement Incentive for full time faculty adopted on April 14, 2009.
The District administers two single-employer defined benefit health care plans: the Retiree
Health Plan (RHP) and beginning in the fiscal year 2010-2011, the Retiree Health Plan-
Faculty Post – 65 (RHPF).
The District provides medical, dental, and vision insurance coverage, as prescribed in the
various employee contracts, to retirees meeting plan eligibility requirements. The District
paid health benefits for all retirees, except medical coverage for members of the Hartnell
College Faculty Association beginning in the 2011-2012 fiscal year, terminates at age 65.
Retiree members of the Hartnell College Faculty Association receive lifetime District-paid
medical coverage for themselves and their dependents.
The District currently finances benefits on a pay-as-you-go basis. The District contributes
100 percent of the cost of current year premiums for eligible retired pal members and their
dependents as applicable.
The District annual other post employment benefit (OPEB) cost is calculated based on the
annual required contribution of the employer (ARC, an amount actuarially determined in
accordance with the parameters of GASB Statement 45.
As of October 1, 2010, the most recent actuarial valuation date, the plan was deemed
unfunded because the District is using an assigned fund rather than an irrevocable trust to set
aside resources for retiree health care costs. Although the plan has no segregated assets, the
District does maintain a retiree benefits fund to assign resources for retiree helath benefit care
costs. The fund’s assigned balance was $4.3 million at June 30 2012. (III.D.8.a Annual Audit
Report)
Self Evaluation
The college meets this standard.
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