2005 CAFR Part 2 - Laserfiche WebLink

Home

COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 service,the County is required to pay half of the monthly premium cost of the above plans. For employees hired July 1, 1996 or after,the amount of the premium cost the County is required to pay varies depending on the employee's years of service at the time of retirement. Currently,the County has 1,060 former employees who have retired with at least ten years of credited service and are receiving the.full benefit. One additional employee has retired with less than ten years of service and has half of his medical premiums paid by the County. For each retiree and retiree's spouse eligible for Medicare,the County also pays$78.00 per month as reimbursement of their Medicare premiums. The County's contribution is recorded as an expenditure when paid. The amount of the contribution is limited by state statute to the actual cost of benefit coverage. During the fiscal year ended June 30,2005,the County's contribution to the Health Fund for retired employees totaled$6.5 million. Deferred Compensation Plan County employees are permitted to participate in a deferred compensation plan of the State of Hawaii,adopted pursuant to Internal Revenue Code(IRC)section 457. The plan permits eligible employees to defer a portion of their salary until future years by contributing to a fund managed by a plan administrator. The deferred compensation amounts are not available to employees until termination,retirement,death,or unforeseeable emergency. All plan assets are held in a trust fund to protect them from claims of general creditors and from diversion to any uses other than paying benefits to participants and beneficiaries. The County has no responsibility for loss due to the investment or failure of investment of funds and assets in the plans,but does have the duty of due care that would be required of an ordinary prudent investor. Therefore,in accordance with GASB Statement No.32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans,deferred compensation plan assets are not reported in the accompanying basic financial statements. 14. COMPONENT UNIT DISCLOSURES Deposits and Investments At June 30,2005,cash,time certificates of deposit,money market funds,and repurchase agreements of$39,294,698,with bank balances of$41,795,164,were held by the County on behalf of the Department. These balances were fully insured or collateralized with securities held by the County's agent in the County's name. -76-