ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 101
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 6 - Other Postemployment Benefits
The Other Postemployment Benefit Plan (OPEB) is a single-employer benefit plan
administered by the City. Under Section 112.0801, Florida Statutes, former employees
who retire from the City are eligible to participate in the City’s health plan for medical and
prescription drug coverage. Although retirees pay for healthcare at group rates, they are
receiving a valuable benefit because they can buy insurance at lower costs than the costs
associated with the experience rating for their age.
The City subsidizes the premium rates paid by retirees by participating in the blended
group (implicitly funded) premium rates for active and retired employees. These rates
provide an implicit subsidy for retirees because, on an actuarial basis, their current and
future claims are expected to result in higher costs to the plan on average than those of
active employees.
The City does not issue a standalone financial report on the OPEB Plan. No assets are
accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Employees Covered by Benefit Terms
To be eligible for participation in the OPEB Plan, the employee must:
Retire under the Florida Retirement System, the City of Eustis Retirement Plan, Eustis
Police Officers’ Pension Plan or the Eustis Firefighters’ Pension Plan, and
Attain the minimum service requirements under the OPEB Plan, and
Elect to continue medical coverage by paying the applicable monthly premium.
The benefit terms covered the following employees as of October 1, 2020 -September
2021, the latest actuarial valuation date:
Retirees and beneficiaries currently receiving benefits
Active employees
Total
19
184
203
Funding Policy Contributions to the OPEB Plan are established and may be amended
through action from the City Commissioners. OPEB plan must reimburse the City for the
City’s average blended cost (the City provides the implicit subsidy). The monthly average
combined costs of the various options for the calendar year 2021 were $596 for individual
coverage, $466 for family coverage, and $545 for the medical reduced supplement plan.
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