Comprehensive Annual Financial Report for the ... - WMATA.com

Washington Metropolitan Area Transit AuthorityFY 2009 Comprehensive Annual Financial ReportNotes to Basic Financial StatementsJune 30, 2009 and 2008(8) Pension Plans (Continued)(d)Defined Contribution Retirement Plan (Continued)The Authority contributed $4,262,000 and $3,697,000 for the years ended June 30, 2009 and 2008,respectively.(e)Deferred CompensationThe Authority offers a deferred compensation plan for all active employees under the terms of theInternal Revenue Section 457(g). Under the 457 plan, employees are permitted to defer up to 100percent of salary, on a pre-tax basis, not to exceed limits prescribed in the Internal Revenue Code.Deferred compensation is not available to employees until termination, retirement, death, or anunforeseeable emergency. The Authority does not match employees' contributions to the 457 plan.(9) Postemployment Benefits Other than Pensions (OPEB)Plan DescriptionsThe Authority contributes to four single- employer defined benefit healthcare plans: Union Local 689, UnionLocal 2, Transit Police and Non-represented. Each plan provides healthcare, prescription drug and lifeinsurance benefits to retirees and their dependents.The Union Local 689, Union Local 2, and Transit Police plans are governed by the terms of their respectivecollective bargaining agreements. The Non-represented plan is governed by the Authority's Board ofDirectors.Funding policy and Annual OPEB CostFor the Union Local 689, Union Local 2, and Transit Police plans, contribution requirements of the planmembers and the Authority are established and may be amended through negotiation between the Authorityand the unions. For the Non-represented plan, the Board of Directors established and may amend thecontribution requirements for the plan members and the Authority.The Authority's OPEB cost for each plan is calculated based on the annual required contribution of theemployer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement45. The ARC represents a level of funding that, if paid on an onging basis, is projected to cover normalcost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not toexceed thirty years.49