ACFR FY 2022 FINAL BOOK - Flipbook - Page 103
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 8 - 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, 2021 - September 2022, 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 total premium combined costs of
the various options for the calendar year 2022 were $133 for individual coverage, $506 for additional
family coverage, $639 for the total family coverage, and $534 for the medical reduced supplement
plans�
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Annual Comprehensive Financial Report | September 30, 2022
103