PARK HILL SCHOOL DISTRICT FINANCIAL STATEMENTS with ...

PARK HILL SCHOOL DISTRICT
Kansas City, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2011
NOTE 4:
OTHER NOTES (continued)
A. Employee Pension Plans (continued)
The statutes assign responsibility for the administration of the system to the Board of Trustees of The
Public School Retirement System of Missouri. PEERS issues a publicly available financial report
that includes financial statements and required supplementary information. That report may be
obtained by writing to: The Public School Retirement System of Missouri, PO Box 268, Jefferson
City, Missouri 65102, or by calling 1-800-392-6848.
PEERS members are required to contribute 6.63% of their annual-covered salary and the District is
required to contribute a matching amount. The contribution requirements of members and the
District are established and may be amended by the Board of Trustees. The District's contributions
to PEERS for the year ending June 30, 2011, were equal to the required contributions.
B. Deferred Compensation Plan
The District adopted a 457(b) deferred compensation plan on March 22, 2002, for eligible
employees. An eligible employee is any employee of the District who irrevocably elects to reduce
and defer compensation, which would otherwise be receivable, during a period of employment
subsequent to the effective date of the Salary Reduction Agreement.
The District makes no contribution to this plan and reserves the right to amend or cancel the plan.
The District has no responsibility for loss due to investment or failure of investment of funds and
assets in the plan but does have the duty of due care that would be required of an ordinary prudent
investor.
All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts, and all income attributable to those amounts, property or rights are (until paid or made
available to the employee or other beneficiary) solely the property and rights of the District (without
being restricted to the provisions of benefits under the plan), subject only to the claims of the
District’s general creditors. Participants’ rights under the plan are equal to those of general creditors
of the District in an amount equal to the fair market value of the deferred account for each
participant.
C. COBRA Benefits
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the District offers healthcare
benefits to eligible former employees and eligible dependents. Certain requirements are outlined by
the federal government for this coverage. The premium is paid in full by the insured on or before the
th
(5 ) day of the month for the current month’s coverage.
This program is offered for a duration of 18 months after the termination date (36 months for
dependents and those who are disability qualified; for social security, 29 months). There is no
associated cost to the District under this program.
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