Cornell University 2011-2012 Annual Report - DFA Home - Cornell ...

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands)G. Expected Contributions and Benefit PaymentsThe expected annual contributions and benefit payments that reflect anticipated service are as follows:EXPECTED CONTRIBUTIONS AND BENEFIT PAYMENTSOther postretirementPension benefits Employer paid Government subsidyUniversity contributions2013 $ 5,243$ 10,264n/aFuture benefit payments2013 $ 3,052$ 15,557 $1,8592014 3,553 16,812 2,0582015 3,394 18,410 2,2542016 3,681 19,855 2,4842017 4,330 21,422 2,7272018-2022 23,783 133,380 17,472The Medicare Prescription Drug, Improvement and Modernization Act of 2003 established a prescription drug benefitknown as “Medicare Part D” that also established a federal subsidy to sponsors of retiree healthcare benefit plans. Theestimated future government subsidy amounts are reflected in the table above.H. Contract College EmployeesEmployees of the Contract Colleges are covered under the New York State pension plans. Contributions to the stateretirement system and other employee benefit costs are paid directly by the state. The amounts of the direct paymentsapplicable to the University as revenue and expenditures are not currently determinable and are not included in theconsolidated financial statements. The University reimburses the state for employee benefit costs on certain salaries,principally those associated with externally sponsored programs. The amounts reimbursed to the state during the fiscalyears ending June 30, 2012 and 2011 were $19,269 and $20,510, respectively, and were included in operating expenses.7. FUNDS HELD IN TRUST FOR OTHERSThe University, in limited instances, invests funds as a custodian for other closely related parties. Independent trustees areresponsible for the funds and for the designation of income distribution. The value of the funds is included in the consolidatedstatement of financial position within Investments which total $190,421 and $202,919 for the fiscal years endingJune 30, 2012 and 2011, respectively. The University recognizes an offsetting liability for funds held in trust for others, withone adjustment described below.The New York Hospital-Cornell Medical Center Fund, Inc. (Center Fund), which benefits the Weill Cornell Medical Collegeand the New York-Presbyterian Hospital, is the major external organization invested in the University’s long-term investmentportfolio with assets and an offsetting liability of $153,273 and $160,501for the fiscal years ending June 30, 2012 and2011, respectively. The liability for funds held in trust for others is then reduced by $100,374 and $91,766, for the fiscal yearsending June 30, 2012 and 2011, respectively, representing the future income stream that will benefit the Medical College.30