Academy Journal Volume 54 | Page 35

  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