368 



Smithsonian institution 



Report of the Chief Financial Officer 



SMITHSONIAN INSTITUTION 



Notes to Financial Statements 



September 30, 2000 



($ millions) 



(12) Employee Benefit Plans 



The federal employees of the Smithsonian are covered by either the Civil Service Retirement System 

 (CSRS) or the Federal Employee Retirement System (FERS). The terms of these plans are defined in 

 federal regulations. Under both systems, the Smithsonian withholds from each federal employee's 

 salary the required salary percentage. The Smithsonian also contributes specified percentages. The 

 Smithsonian's expense for these plans for fiscal year 2000 was $17.8. 



The Smithsonian has a separate defined contribution retirement plan for trust fund employees in which 

 substantially all such employees are eligible to participate. Under the plan, the Smithsonian contributes 

 stipulated percentages of salary which are used to purchase individual annuities, the rights to which are 

 immediately vested with the employees. Employees can make voluntary contributions, subject to 

 certain limitations. The Smithsonian's expense for this plan for fiscal year 2000 was SI 1 .3. 



In addition to the Smithsonian's retirement plans, the Smithsonian makes available certain health care 

 and life insurance benefits to active and retired trust fund employees. The plan is contributory for 

 retirees and requires payment of premiums and deductibles. Retiree contributions for premiums are 

 established by an insurance carrier based on the average per capita cost of benefit coverage for all 

 participants. Information relating to the obligations, assets and funded status of the plan as of 

 September 30, 2000, and for the year then ended is summarized as follows: 



Change in benefit obligation: 



Benefit obligation at September 30, 1999 $ 4.8 



Service cost 0.3 



Interest cost 0.3 



Benefits paid (0.1) 



Benefit obligation, September 30, 2000 5.3 



Change in plan assets: 



Fair value of plan assets, September 30, 1999 — 



Actual return on plan assets — 



Employer contributions 0. 1 



Benefits paid (0.1) 



Fair value of plan assets. September 30. 2000 



Projected benefit obligation in excess of plan assets 

 Unrecognized transition obligation 

 Unrecognized net actuarial gain 



Accrued postretirement benefit obligation 



— 



(5.3) 



4.3 



(5.9) 



(6.9) 



