Comprehensive Annual Financial Report for FY 2012 - Omnitrans

• Public Officials Errors and Omissions: Omnitrans is self-insured up to $1,000,000 per occurrence and has purchased
re-insurance and excess insurance coverage.
• Vehicle Collision and Comprehensive Liability: Insured up to actual cash value of covered vehicles up to $10,000,000
per occurrence subject to per vehicle deductibles. The Authority has purchased excess insurance coverage.
Separate financial statements of the Authority can be obtained at 1415 L Street, Suite 200, Sacramento, CA 95814.
Omnitrans has also purchased additional insurance coverage outlined below:
• Workers’ Compensation Liability: Omnitrans is self-insured for workers’ compensation claims up to $1,000,000 with
a limit of liability of $5,000,000 and excess coverage up to $95,000,000.
FINANCIAL SECTION
• Property Liability: Omnitrans is self-insured for property damage up to $25,000 for Electronic Data Processing Equipment
and $10,000 for all other losses per occurrence, with limit of liability up to $32,522,360. Omnitrans has also purchased
earthquake and flood coverage for damage, for which it is self-insured up to $25,000 for an earthquake and $50,000 for a
flood per occurrence, with a limit of liability of $10,000,000 and excess coverage of $10,000,000.
• Crime Liability: Omnitrans is self-insured for employee dishonesty and theft up to $1,000 per occurrence, with a limit
of liability up to $50,000.
• Pollution Remediation Liability: Omnitrans is self-insured for pollution remediation claims up to $50,000 per occurrence
and $150,000 in aggregate, with a limit of liability of $5,000,000 per occurrence and $10,000,000 in aggregate.
• Employment-Related Practices Liability: Omnitrans is self-insured for employment-related practices liability claims up
to $50,000 with a limit of liability of $1,000,000.
For the past three fiscal years, none of the above programs of protections has had settlements or judgments that exceeded
pooled or insured coverage. As of June 30, 2012, in the opinion of legal counsel, Omnitrans had no material claims which
would require loss provision in the financial statements and therefore no additional claims liability has been recorded.
(8) DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
Omnitrans contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer, public
employee-defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members
and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the
State of California. Copies of PERS’ annual financial report may be obtained from their executive office: 400 Q Street,
Sacramento, California 95811.
FUNDING POLICY
Participants are required to contribute 7% of their annual covered salary. Omnitrans makes the contributions required
of Omnitrans’ employees on their behalf and for their account. The contribution requirements of the plan members and
Omnitrans are established and may be amended by PERS.
ANNUAL PENSION COST
Under GASB Statement No. 27, an employer reports an Annual Pension Cost (APC) equal to the Annual Required Contribution
(ARC) plus an adjustment for the cumulative difference between the APC and the employer’s actual plan contributions for the
year. The cumulative difference is called the Net Pension Obligation (NPO). The ARC for the period July 1, 2011 to June 30,
2012 has been determined by an actuarial valuation of the plan as of June 30, 2009. The contribution rate indicated for the
period is 11.070% of payroll. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as
2012 Comprehensive Annual Financial Report
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