Page 38 - RFCUNY-2010AnnualReport

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Notes to Consolidated Financial Statements June 30, 2010 and 2009 (continued)

for the years ended June 30, 2010 and 2009 was approximately $8,975,000 and $8,685,000, respec-tively. There are no unfunded past service costs.  In addition to providing pension benefits, the Founda­ tion also provides postemployment benefits, including salary continuance, to certain employees. The cost of these benefits is accrued over the employees’ years of service. Postemployment benefits liability included in accounts payable and accrued expenses was approximately $1,509,077 and $1,211,701 in 2010 and 2009, respectively.

 The Foundation also provides certain healthcare benefits to retired employees (including eligible dependents) who have a combination of age and years of service equal to 70 with a minimum age of

55 and at least 10 years of continuous service. The Foundation accounts for postretirement medical and other nonpension benefits provided to retirees on an accrual basis during the period of their employment.  The Foundation charges grants and contracts, as well as the administrative services department for postretirement benefit costs through the application of a fringe benefit rate, an element of which is based upon the estimated amount of such costs. In addition, a charge or credit is recognized in administrative ser-vices expenses for the difference between the actuar-ially determined net periodic postretirement benefit cost and the amount funded (claims paid and contri-butions to the trust).

 Information with respect to the postretirement plan is as follows:

2010 2009 Change in benefit obligation:

 Benefit obligation at beginning of year $ 86,032,383 79,134,142  Service cost 4,265,368 4,941,128  Interest cost 5,040,416 5,088,799  Actuarial loss (gain) 6,329,053 (769,313)  Benefits paid and administrative expenses (2,827,348) (2,362,373)  Benefit obligation at end of year 98,839,872 86,032,383 Change in plan assets:

 Fair value of plan assets at beginning of year 36,112,072 39,808,286  Actual return on plan assets 5,027,549 (9,696,214)  Employer contributions 7,673,958 8,362,373  Benefits paid and administrative expenses (2,827,348) (2,362,373)  Fair value of plan assets at end of year 45,986,231 36,112,072   Funded status, recorded as a liability in the

 accompanying consolidated balance sheets $(52,853,641) (49,920,311)

2010 2009 Weighted average assumptions as of June 30:

  Discount rate 5.45% 6.25%   Expected return on plan assets 5.00 5.50

2010 2009 Components of net periodic cost:

 Service cost $ 4,265,368 4,941,128  Interest cost 5,040,416 5,088,799  Expected return on plan assets (1,924,167) (2,354,598)  Amortization of transition obligation 757,413 757,413  Recognized prior service credit (779,041) (779,041)  Recognized net loss 1,699,899 814,510   Net periodic benefit cost $ 9,059,888 8,468,211 Weighted average assumptions for the year ended June 30:

 Discount rate 6.25% 6.85%  Expected return on plan assets 5.00 5.50