Ideal Fund Balance Target as used in this document shall mean the average of two numbers as determined by First Administrators (or an organization unrelated to the City and appointed by majority vote of the City Healthcare Plan Committee) on or before June 15th of each year. The first calculated number in determining the Ideal Fund Balance Target shall be 35% of the Expected Plan Cost of the City Medical Plan for the subsequent Plan Year of July 1 through June 30 and the second number shall be 25% of the Maximum Plan Cost of the City Medical Benefit Plan for the subsequent Plan Year. Both numbers shall be based on the actual average enrolled employees and dependents in the 11 months ending May 31 of that Plan Year.
Examples of Ideal Fund Balance Target in a sentence
If the above Funding concept is more than adequate to meet the expected plan cost and also produces dollars in excess of the Ideal Fund Balance Target the excess dollars must first be used to repay any loans due the City of Rapid City, secondly these dollars may be used to offset the forthcoming years funding need by carrying the dollars forward to subsequent years.
This document shall set Annual Funding increases at a minimum of 5% and a maximum of 14% as determined by the Fund needs to finance the Expected Plan Costs for the forthcoming year; plus or minus the Fund needs to move towards meeting or maintaining the Ideal Fund Balance Target for the forthcoming year.