ACFR FY 2023 Final - Flipbook - Page 109
City of Eustis, Florida
FINANCIAL SECTION
NOTES TO FINANCIAL STATEMENTS
Note 8 - Other Post-Employment Beneots
The Other Post-Employment Beneot Plan (OPEB) is a single-employer beneot plan administered by
the Cityÿ Under Section 112ÿ0801, Florida Statutes, former employees who retire from the City are
eligible to participate in the City9s health plan for medical and prescription drug coverageÿ Although
retirees pay for healthcare at group rates, they are receiving a valuable beneot because they can
buy insurance at lower costs than the costs associated with the experience rating for their ageÿ
The City subsidizes the premium rates paid by retirees by participating in the blended group
(implicitly funded) premium rates for active and retired employeesÿ 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 employeesÿ
The City does not issue a standalone onancial report on the OPEB Plan. No assets are accumulated
in a trust that meets the criteria in paragraph 4 of GASb Statement Noÿ 75ÿ
Employees Covered by Beneot Terms
To be eligible for participation in the OpEb plan, the employee must:
ï
ï
ï
Retire under the Florida Retirement System, the City of Eustis Retirement plan, Eustis police
Ofocers9 Pension Plan or the Eustis Fireoghters9 Pension Plan, and
Attain the minimum service requirements under the OpEb plan, and
Elect to continue medical coverage by paying the applicable monthly premiumÿ
The beneot terms covered the following employees as of October 1, 2022 - September 2023, the
latest actuarial valuation date:
Retirees and beneociaries currently receiving beneots
Active employees
Total
24
174
198
Funding Policy Contributions to the OpEb plan are established and may be amended through action
from the City Commissionÿ The OpEb plan must reimburse the City for the City9s average blended
cost (the City provides the implicit subsidy)ÿ The monthly average total premium combined costs of
the various options for the calendar year 2023 were:
for the plan pre-65 years old - $623ÿ93 for individual coverage, $1,112ÿ11 for additional family
coverage, and
for the plan post-65 years old - $570ÿ19 for individual coverage, $1,081ÿ56 for additional family
coverageÿ
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Annual Comprehensive Financial Report | September 30, 2023
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