plan to a high deductible healthcare plan and implemented a health savings account. Some of the
savings realized from this plan change was given
back to the employees in the form of a contribution to their health savings account.
The retiree health plan was also terminated for
all active participants who were not eligible to retire effective June 30, 2012 resulting in a savings to
operations of approximately $450 thousand annually. This plan termination called for special payments from accumulated plan assets to those active participants of approximately $2.9 million of
which approximately $2.0 million was distributed
in two mailings this year. The remaining special
payments balance will be paid out over the next
three years. As of June 30, 2013 the Academy held
retiree health plan assets of $9.4 million against a
recorded liability of $4.3 million.2 The remaining
assets in this plan are more than enough to fully
fund the liability.
Effective December 31, 2013, the defined benefit pension plan3 will be frozen for all participating
active employees. Revisions are being made to the
403(b) Plan in conjunction with this plan freeze.
These changes are estimated to save the Academy
in excess of $100 thousand per year while still providing a competitive &WF