Comprehensive Annual Financial Report (CAFR) - Johnson City

CITY OF JOHNSON CITY, TENNESSEENOTES TO THE FINANCIAL STATEMENTSFor the Fiscal Year Ended June 30, 20115. OTHER INFORMATION (CONTINUED):G. Pension Plan (continued)Johnson City Power Board (Continued):Annual Pension Cost (continued):The Power Board's unfunded actuarial accrued liability is being amortized as a level dollar amounton a closed basis. The remaining amortization period at July 1, 2009 was 15 years. An actuarialvaluation was performed as of July 1, 2009, which establis~ed contribution rates effective July 1,2010.Trend InformationFiscal YearEndingJune 30, 2011June 30,2010June 30, 2009AnnualPensionCost (APC)$ 1,467,9481,400,0391,334,487PercentageofAPCContributed100%100%100%Net PensionObligation$Funded Status and Funding ProgressAs of July 1, 2009, the most recent actuarial valuation date, the plan was 75.00% percent funded.The actuariai accrued liability for benefits was $38.6 million, and the actuarial value of assets was$28.9 million, resulting in an unfunded actuarial accrued liability (VAAL) of $9.6 million. Thecovered payroll (annual payroll of active employees covered by the plan) was $9.3 million, andthe ratio of the UAAL to the covered payroll was 103.67%.The schedules of funding progress, presented as required supplementary information (RSI)following the notes to the financial statements, present multiyear trend information about whetherthe actuarial values of plan assets are increasing or decreasing over time relative to the AALs forbenefits. The annual required contribution (ARC) was calculated using the aggregate actuarialcost method.120