11. CHANGESINTEMPORARILYRESTRICTEDNETASSETS Themeasurementdateusedtodeterminethe2009amountswas
2009 2008
March31,2009. Therateofincreasewasassumedtochangeat
COPE:
ratesrangingfrom7.6%for2010,decreasingto7.2%for2011,
Contributionsreceived
6.6%for2012,5.8%for2013,5.7%for2014through2017,and
withdonorrestrictions $103,142 $108,825
5.6%for2018through2021. Thehealthcarecosttrendrate
assumptionhasasignificanteffectontheamountsreported.
Interestearnedthathas
beenrestricted $2,053 $10,788
Theweightedaveragediscountrateusedindeterminingthe
accumulatedpostretirementbenefitobligationwas7.38%.
Netassetsreleasedfromdonor
restrictionsbyincurring
14. ACCRUEDPOSTRETIREMENTBENEFITS
expensessatisfyingthe
restrictedpurposes $191,827 $137,529
Thefollowingestimatedbenefitpayments,whichreflectexpected
futureservice,asappropriate,areexpectedtobepaid:
12. CONCENTRATIONOFCREDITRISK
2010 $118,110
DuringtheyearendedMarch31,2009,theFederalDeposit
2011 155,289
InsuranceCorporation(FDIC)increasedthefederallyinsuredlimits
2012 196,650
onbankaccountsheldatfinancialinstitutionsto$250,000and
2013 232,289
createdtheTemporaryLiquidityGuaranteeProgram.Underthis
2014 259,844
program,non-interestbearingtransactionaccountsheldatfinancial
2015-2018 1,900,604
institutionsthatoptedtotakepartintheprogramareinsuredinfull
versusthe$250,000limit.PEF’sfinancialinstitutionisacurrent
15. SELF-INSURANCEPLAN
participantinthisprogram;assuch,PEF’saccountsareinsuredin
fullatMarch31,2009.
PEFprovideshealthinsurancebenefitsutilizingaself-fundedplan
thatcoverssubstantiallyallfull-timeemployees. Theliabilityfor
PEFmaintainsinvestmentaccountsatabrokeragehouse.PEF’s
claimsincurredandclaimsincurredbutnotreportedwas
accountsareinsuredbytheSecuritiesInvestorProtection
approximately$75,000forbothyearsendedMarch31,2009and
Corporation(SIPC)upto$500,000. Additionalinsuranceheldbythe
2008.
brokeragefirmwouldcovertheremainingbalancesintheaccounts
shouldthebrokeragehousefail.
PEFhaspurchasedindividualriskandexcessriskstop-loss
insurancetolimititsexposuretoclaimsinexcessofspecified
13. ACCRUEDPOST-RETIREMENTBENEFITS
amounts.
RetiredPEFemployeescanconvertunusedsickleavetocashforthe
16. FAIRVALUEOFFINANCIALINSTRUMENTS
purposeofpayinghealthinsurancebenefits. Tobeeligible,retiring
employeesmustmeetoneofthethreefollowingcriteria: sixty-five
PEFadoptedStatementofFinancialAccountingStandardNo.157
yearsofageandthreeyearsofservice;fifty-fiveyearsofageand10
“FairValueMeasurements,”(SFASNo.157)duringtheyearended
yearsofservice;oragefiftyand30yearsofservice. PEFrecognizes March31,2009. SFASNo.157establishesathree-levelhierarchy
thecostofprovidingpostretirementhealthinsurancebenefitsby fordisclosureoffairvaluemeasurements. Thevaluationhierarchy
estimatingtheaccumulatedpostretirementbenefit. Itisatleast isbaseduponthetransparencyofinputstothevaluationofan
reasonablypossiblethatthissignificantestimatewillchangewithin assetorliabilityasofthemeasurementdate. Afinancial
thenextyear. instrument’scategorizationwithinthevaluationhierarchyisbased
uponthelowestlevelofinputthatissignificanttothefairvalue
Thefollowingtablesetsforththeplan’sstatusreconciledwiththe
measurement. Thethreelevelsaredescribedasfollows.
amountshowninPEF'sstatementoffinancialpositionatMarch31,
2009:
Level1-Inputstothevaluationmethodologyarequotedprices
(unadjusted)foridenticalassetsorliabilitiesinactivemarkets.
AccumulatedPostretirementBenefitObligation:
Level2-Inputstothevaluationmethodologyincludequotedprices
Benefitobligationatbeginningofyear $3,539,925
forsimilarassetsandliabilitiesinactivemarketsandinputsthat
Servicecost 235,567
areobservablefortheassetorliability,eitherdirectlyorindirectly,
Interestcost 326,495
forsubstantiallythefulltermofthefinancialinstrument.
Benefitspaid (94,098)
Level3-Inputstothevaluationmethodologyareunobservableand
Recognitionofactuarialloss(gain) 852,053
TotalAccumulatedPostretirement
significanttothefairvaluemeasurement.
BenefitObligation 4,859,942
Planassetsatfairvalue -
Themethodsdescribedabovemayproduceafairvaluecalculation
AccumulatedPostretirementBenefitObligation
thatmaynotbeindicativeofnetrealizablevalueorreflectiveof
inExcessofPlanAssets (4,859,942)
futurefairvalues. Furthermore,whilePEFbelievesitsvaluation
Unrecognizedpriorservicecost -
methodologiesareappropriateandconsistentwithothermarket
Unrecognizedactuarialloss -
participants,theuseofdifferentmethodologiesorassumptionsto
AccruedPostretirementBenefitObligation
determinethefairvalueofcertainfinancialinstrumentscould
–
$
–
(
–
4
–
,8
––
5
–
9
–
,
–
9
–
4
–
2
–
)
resultinadifferencefairvaluemeasurementatthereportingdate.
Theestimatedcurrentportionoftheaccruedliabilityis$118,110at
March31,2009andisincludedinaccruedexpenses.
(Continued on next Page)
Thenetperiodicpostretirementhealthcarebenefitcostfortheyear
endedMarch31,2009consistsofthefollowingcomponents:
Servicecost $235,567
Interestcost 326,495
Amortizationofpriorservicecost -
Recognitionofactuarial(gain)/loss 191,802
NetPostretirementBenefitCost
–
$
–
7
––
5
–
3
–
,
–
8
–
6
–
4
–
www.pef.org TheCommunicatorNovember2009—Page19
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