2014 Annual Comprehensive Financial Report

Home Browse Search

City of Louisville Notes to the Financial Statements December 31, 2014 Note 8: Retirement commitments — employee pension plan The City provides a qualified defined contribution pension plan, administered by the ICMA Retirement Trust, for all regular full-time and regular part-time employees. At December 31, 2014, there were 183 plan members. This plan is provided through the ICMA Retirement Corporation Prototype 401(a) Money Purchase Plan and Trust. This plan does not meet the standards of generally accepted accounting principles for inclusion as part of the reporting entity. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are required to participate from date of employment. For 2014, the City required the employee to contribute 5.0% of earnings with the City matching 5.5% for the plan year. Plan provisions and contribution requirements have been adopted by the City Council. Changes to the plan can be made by the City Manager. Earnings include base pay, overtime, and any applicable bonuses. The City's matching contributions and earnings are vested as follows: Years of Specified Service Percent Completed Vested Less than One 0% One 50% Two 100% All administrative costs of the plan are borne by the participants of the plan. City contributions for, and interest forfeited by, employees who leave employment before partially or fully vested may be used to reduce future City contributions. The 2014 contributions were $523,057 from employees and $575,363 from the City for a total of $1,098,420. Wages paid by the City in 2014 totaled $11,436,488, with regular full-time and regular part-time benefited employees receiving $10,461,132. In addition, employees may participate in an Internal Revenue Code 457 Plan on a voluntary basis. The City only makes contributions to the City Manager's 457 Plan, an amount equal to 10% of base salary. Note 9: Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. The City carries commercial insurance for the risks of loss, including worker's compensation and property/casualty loss insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. Limits of insurance coverage remain unchanged in the past three years. 58