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Notes to Consolidated Financial Statements
(continued)
June 30, 2011 and 2010
Information with respect to the postretirement plan is as follows:
2011
2010
Change in benefit obligation:
Benefit obligation at beginning of year
$ 98,839,872
86,032,383
Service cost
5,033,314
4,265,368
Interest cost
4,863,083
5,040,416
Actuarial (gain) loss
(11,463,405)
6,329,053
Benefits paid and administrative expenses
(2,885,626)
(2,827,348)
Benefit obligation at end of year
94,387,238
98,839,872
Change in plan assets:
Fair value of plan assets at beginning of year
45,986,231
36,112,072
Actual return on plan assets
9,759,771
5,027,549
Employer contributions
12,039,016
7,673,958
Benefits paid and administrative expenses
(2,885,626)
(2,827,348)
Fair value of plan assets at end of year
64,899,392
45,986,231
Funded status, recorded as a liability in the accompanying consolidated balance sheets
$(29,487,846)
(52,853,641)
2011
2010
Weighted average assumptions as of June 30:
Discount rate
5.70%
5.45%
Expected return on plan assets
5.00
5.00
2011
2010
Components of net periodic cost:
Service cost
$ 5,033,314
4,265,368
Interest cost
4,863,083
5,040,416
Expected return on plan assets
(2,529,401)
(1,924,167)
Amortization of transition obligation
757,413
757,413
Recognized prior service credit
(779,041)
(779,041)
Recognized net loss
1,357,111
1,699,899
Net periodic benefit cost
$ 8,702,479
9,059,888
Weighted average assumptions for the year ended June 30:
Discount rate
5.45%
6.25%
Expected return on plan assets
5.00
5.00
For measurement purposes, increases in healthcare costs (8.0%
in 2011), other than Medicare Part B, were assumed to decrease
by 1.0% in years 2012 through 2014 to an ultimate rate of 5.0%.
Medicare Part B costs were assumed to increase by 4.0% annually.
Assumed healthcare trend rates have a significant effect on
the amounts reported for postretirement plans. A one-percentage-
point change in assumed healthcare cost trend rates would have
the following effects for 2011:
1% Increase 1% Decrease
Effect on total of service and
interest cost components
$ 1,811,674 (1,596,899)
Effect on postretirement
benefit obligation
14,026,382 (12,917,625)
For the years ended June 30, 2011 and 2010, the Organization
made contributions to the postretirement plan of $9,153,390 and
$4,846,610, respectively. In addition, for the years ended June 30,
2011 and 2010, the Organization paid claims and expenses of
$2,885,626 and $2,827,348, respectively. The Organization
expects to contribute or pay claims and expenses aggregating
to approximately $8,800,000 in 2012.
The benefits expected to be paid in each fiscal year from 2012
through 2016 and the five subsequent years are:
Year:
2012
$ 3,254,001
2013
3,665,730
2014
4,048,820
2015
4,506,821
2016
4,929,657
2017–2021
29,607,707
2
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