The Palaima City government provides postemployment health care benets to retirees. Plan members contribute between $65 and $90 per month depending on age and marital

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The Palaima City government provides postemployment health care benefits to retirees. Plan members contribute between $65 and $90 per month depending on age and marital status. The government contributes the annual required contribution as determined in accordance with GASB Statement No. 45. The tables below and on the next page were taken from the city’s annual report. All dollar amounts are in thousands.
1. The city first adopted Statement No. 45 for the year beginning January 1, 2011. What is the most likely reason why the plan is only 57 percent funded as of December 31, 2011?
2. What is the nature of the net OPEB obligation and what is the most likely reason that it is zero?
3. Has the city been making the payments to the plan that are required of it per the actuarial computations for the years 2011 and following? How can you tell?
4. Has the fiscal health of the plan been improving or deteriorating in the three years for which data are presented?
5. Assuming that the compensation costs of all covered employers are accounted for in the city’s general fund, what would be the reported general fund expenditure for 2011? What would be the expense reported in the government-wide statement of activities?