|
COUNTY OF HAWAII
<br /> Notes to the Basic Financial Statements
<br /> June 30,2005
<br /> County is substantially self-insured for its vehicles as well as for all other perils including
<br /> workers'compensation and general liability.
<br /> Liabilities are reported when it is probable that a loss has occurred and the amount of that loss
<br /> can be reasonably estimated. These losses include an estimate of claims that have been
<br /> incurred but not reported(IBNR). Claim liabilities,including IBNR,are based on the
<br /> estimated ultimate cost of settling the claims,and include incremental costs for the hiring of
<br /> special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
<br /> review of all claims and the applicat:�on of historical experience to outstanding claims.
<br /> Estimates of IBNR are based on historical experience. The liability for claims and judgments
<br /> is reported on the government-wide statement of net assets. At June 30,2005,the amount of
<br /> this liability was$26,602,289. This is the County's best estimate based on available
<br /> information. Changes in the reported liability since June 30,2003 are given below.
<br /> General Workers' Total
<br /> Liabili Compensation Liabilily
<br /> Balance at June 30,2003 $6,670,511 $11,902,820 $18,573,331
<br /> Incurred claims(including IBNR;i* 2,759,512 4,795,010 7,554,522
<br /> Claim payments (2,591,639) (3,507,214) (6,098,853)
<br /> Balance at June 30,2004 $6,838,384 $13,190,616 $20,029,000
<br /> Incurred claims(including IBNRl* 4,669,502 6,764,323 11,433,825
<br /> Claim payments (1,544,734) (3,315,802) (4,860,536)
<br /> Balance at June 30,2005 $16,639,137 $26,602.289
<br /> *Net of new claims liability and old claims resolved at less than previous estimate.
<br /> 13. EMPLOYEE BENEFIT PLANS
<br /> Pension Plan
<br /> Plan description All full-time employees of the County participate in the Employees'
<br /> Retirement System of the State of H.awai`i(System),a cost-sharing multiple-employer
<br /> defined benefit pension plan. The System was established by Chapter 88 of the Hawaii
<br /> Revised Statutes(HRS)and is governed by a Board of Trustees. All contributions,benefits
<br /> and eligibility requirements are established by Chapter 88,HRS,and can be amended by
<br /> legislative action.
<br /> The System regards the County,including its component unit,as one employer. Therefore,
<br /> separate information for the primary government and its component unit is not available. All
<br /> information given below on the pension plan is for the reporting entity as a whole,including
<br /> both the primary government and its component unit.
<br /> -74-
<br />
|