WAUKESHA COUNTY Waukesha, Wisconsin

WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010NOTE 14– EMPLOYEES’ RETIREMENT SYSTEM (Cont’d)31, 2009 and 2008 were $8,451,886 and $8,705,410, respectively, equal to the required contributions foreach year.Employees who retire at or after age 65 (62 for elected officials, 54 for protective occupation employeeswith less than 25 years of service, and 53 for protective occupation employees with more than 25 years ofservice) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protectiveoccupation employees) and receive actuarially reduced benefits. The factors influencing the benefit are:(1) final average earnings, (2) years of creditable service, and (3) a formula factor. A final averageearnings is the average of the employee’s three highest years earnings. Employees terminating coveredemployment before becoming eligible for a retirement benefit may withdraw their contributions and, bydoing so, forfeit all rights to any subsequent benefit. For employees beginning participation on or afterJanuary 1, 1990 and no longer actively employed on or after April 24, 1998, creditable service in each offive years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on orafter April 24, 1998 are immediately vested.The System also provides death and disability benefits for employees. Eligibility for and the amount of allbenefits is determined under Chapter 40 of Wisconsin Statutes. The WRS issues an annual financialreport that may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931,Madison, WI 53707-7931.There was no pension-related debt for the County as of December 31, 2010.NOTE 15 – RISK MANAGEMENT/SELF INSURANCEThe County is exposed to various risks of loss related to torts; theft of, damage to, or destruction ofassets; errors and omissions; and workers compensation. The County purchases commercial insuranceto provide coverage for losses from theft of, damages to, or destruction of assets. The County alsoparticipates in a public entity risk pool called the Wisconsin Municipal Mutual Insurance Company(WMMIC) to provide coverage for losses from torts, errors and omission, and workers compensation.Such risks are accounted for and financed by the County in an internal service fund – the riskmanagement fund.Public Entity Risk PoolDuring 1987, the County, together with certain other units of government within the State of Wisconsin,created the Wisconsin Municipal Mutual Insurance Company (WMMIC), a nonassessable mutualcompany which provides liability insurance and risk management services to its members. The Countybecame a member of WMMIC in 1987 by issuing a general obligation note for $2,459,264 and investingthe proceeds in WMMIC. The scope of insurance protection provided by WMMIC is broad, coveringautomobile liability, general liability, law enforcement liability, public official’s errors and omissions, civilrights, incidental medical malpractice, personal injury, equal rights, and Americans with Disabilities Act atpolicy limits of $5,000,000 per occurrence with a $15,000,000 aggregate for general and automobileliability claims and a $15,000,000 aggregate for errors or omissions claims. The County’s self-insuredretention limit is $350,000 for each occurrence and $1,250,000 annual aggregate. At this time, settledclaims have not exceeded the commercial coverage in any of the past three years. WMMIC’s exposure inits layer of insurance is limited to $1,000,000 per occurrence in that the company purchases $4,000,000per occurrence in reinsurance for losses in excess of its retained layer of coverage.78