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<br />Notes to Combined Financial Statements, Continued
<br />
<br />Pension benefit obligation:
<br />Inactive employees:
<br />Retirees
<br />Vested terminated
<br />Disabled/ death
<br />
<br />$ 65,024
<br />
<br />Active employees:
<br />Accumulated employee contributions
<br />Employer-paid vested benefits
<br />Employer-paid nonvested benefits
<br />
<br />4,507,024
<br />19,124,813
<br />2,966,333
<br />26,598,170
<br />Total pension benefit obligation 26,663,194
<br />Net assets available for benefits 26,738,997
<br />Net assets in excess of pension benefit obligation $ 75,803
<br />
<br />The term "pension benefit obligation"
<br />reflects the present value of pension bene-
<br />fits, adjusted for the effects of projected
<br />salary increases and step-rate benefits, esti-
<br />mated to be payable in the future as a
<br />result of employee service to date,
<br />Significant assumptions used to determine
<br />
<br />the pension benefit obligation and the
<br />actuarial accrued liability include:
<br />
<br />· A rate of return on the investment of pre-
<br />sent and future assets of 8%
<br />
<br />· Salary increases of 6% per year com-
<br />pounded annually
<br />
<br />1994
<br />
<br />January 1
<br />
<br />1993
<br />
<br />58,912
<br />
<br />65,024
<br />
<br />58,912
<br />
<br />4,950,585
<br />18,346,444
<br />2,055,995
<br />25,353,024
<br />25,411,936
<br />31,845,448
<br />6,433,512
<br />
<br />. Loading for expenses: 2% of gross cost
<br />· Retirement age of 65,
<br />Certain historical trend information is
<br />summarized as follows:
<br />
<br />December 31
<br />1994 1993
<br />$49,380,314 49,239,183
<br />$44,151,673 44,157,842
<br />
<br />Total payroll
<br />Covered payroll
<br />District contributions as a percentage
<br />of annual covered payroll
<br />
<br />8,35%
<br />
<br />7.55%
<br />
<br />Additional trend information is as follows (information not available prior to 1989):
<br /> December 31
<br /> 1994 1993 1992 1991 1990 1989
<br /> --
<br />Net assets available for benefits $ 26,738,997 31 ,8.!5 ,448 29,711,272 26,670,346 25,605,788 23,501,467
<br />Pension benefit obligation 26,663,194 25,411,936 23,796,289 22,088,928 20,603,450 16,359,777
<br />Percent funded 100,28% 125.32% 124,86% 120.74% 124,28% 143,65%
<br />Assets in excess of pension benefit obligation 75,803 6,433,512 5,914,983 4,581,418 5,002,338 7,141,690
<br />Annual covered payroll $44,151,673 44,157,842 41,459,746 38,098,392 33,682,560 29,945,040
<br />Assets in excess of pension benefit obligation as a
<br />percent of covered payroll. 17% 14,57% 14.27% 12,03% 14,85% 23,85%
<br />Total District contributions $ 3,684,645 3,331,698 3,133,898 2,365,294 2,030,677 1,696,000
<br />District contributions as a percent
<br />of annual covered payroll 8.35% 7.55% 7.56% 6,20% 6,02% 5.66%
<br /> --
<br /> --
<br />
<br />Amounts charged to operations were $3,331,698 and $3,133,898 for 1994 and 1993, respectively,
<br />
<br />NOTE 12 Commitments
<br />and Contingencies
<br />
<br />Litigation
<br />
<br />In the ordinary course of operations, the
<br />District is the subject of claims and litiga-
<br />tion from outside parties, After consulta-
<br />tion with legal counsel, the District
<br />believes that adequate provision has been
<br />
<br />made for the costs, if any, of the ultimate
<br />outcome of the legal proceedings, such
<br />that these matters will not materially affect
<br />the District's combined financial condition,
<br />Self-Insurance
<br />The District is self-insured for workers'
<br />compensation claims and employee med-
<br />ical care benefits, At December 31,1994
<br />
<br />and 1993, the District accrued $2,852,000
<br />and $2,592,000, respectively, for estimated
<br />claims to be paid in the future, In addi-
<br />tion, the District is partially self-insured
<br />for general claims and carries excess insur-
<br />ance coverage for general liability matters,
<br />At December 31, 1994 and 1993, the
<br />District's management accrued $15,315,000
<br />and $4,369,000, respectively, for estimated
<br />
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