Comprehensive Annual Financial Report - Metro Transit

Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Financial StatementsJune 30, 2011 and 2010Funding Status and Funding ProgressAs of the latest actuarial valuation date for each plan funding progress is as follows:Salaried Plan 788 O&M Plan 788 Clerical Plan IBEW PlanPercent Funded 83.0% 55.3% 55.5% 71.1%Actuarial Accrued Liabitlity $ 56,933,387 $ 168,931,028 $ 10,601,527 $ 2,319,562Actuarial Value of Assets $ 47,226,544 $ 93,422,609 $ 5,887,209 $ 1,649,706Unfunded Actuarial AccruedLiability (UAAL) $ 9,706,843 $ 75,508,419 $ 4,714,318 $ 669,856Covered Payroll $ 25,286,621 $ 51,185,202 $ 1,632,280 $ 2,887,747Ratio of UAAL to CoveredPayroll 38.4% 147.5% 288.8% 23.2%The schedule of funding progress, presented as required supplementary information(RSI) following the notes to the financial statements, presents multiyear trend informationabout whether the actuarial value of plan assets are increasing or decreasing over timerelative to the actuarial accrued liability for benefits.Other Post-Employment BenefitsIn addition to the pension benefits described above, Metro provides other postemploymenthealth care benefits to all employees who meet retirement requirements andprovide an employee share of premiums. The benefits for union retirees are determinedby contractual agreement and the benefits for salaried retirees represent a voluntarypayment. As of June 30, 2011 and 2010, 1,120 and 1,107 union and salaried retirees,respectively, met those requirements.Three plan options are offered, and retiree contributions are three-tiered based onretirement date. The retiree contributions range from $2 per month Tier 1 Economy Plancoverage to $304 per month for family Tier 3 Premium Plan coverage. Metro reimbursesa minimum of eighty percent of the amount of validated claims for medical andhospitalization costs incurred by retirees and their dependents.For each retiree eligible for Medicare, Metro’s Plan coordinates benefits with Medicare.Expenditures for post-employment health care benefits are recognized as retirees reportclaims and include a provision for estimated claims incurred but not yet reported (IBNR)to Metro. In addition, some retirees are included in health maintenance organizations forwhich Metro pays fixed premiums.Plan DescriptionMetro Self-Insured Comprehensive Medical Plan is a single-employer healthcare plan.Metro provides healthcare benefits to retirees, their spouses and their eligibledependents, and life insurance benefits to its retirees.50