Question #71: Please provide additional information on the City's Acturarially Required Funding (ARC).

FY 2018 Question #71: Please provide additional information on the City's Acturarially Required Funding (ARC).

Page updated on Jun 16, 2017 at 10:28 AM

Question:

Previously, we have published a schedule of our Actuarially Required Funding and our planned increases (as well as any draw downs in fund balance) in the future. Please provide additional information on the City's ARC.

Response:

Full funding for OPEB for FY 2018, the Actuarially Required Funding (ARC) is $7.1 million. This is the amount the actuaries recommend that the City fund this year.  This amount is expected to be funded with current operating funds.  Approximately half of the contribution is budgeted in a Non-Departmental account and used to pay current premiums for retiree health and life insurance. The remaining portion is allocated across the organization as a percent of payroll and contributed to the OPEB plan for future retirees.  The FY 2018 employee premium is estimated to be about $3 million with the remaining portion of $4.1 million budgeted as a separate cost. The City no longer uses any appropriation from fund balance to provide funding for OPEB.   


Printable Version

Top