ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 92
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. Pursuant to the provisions of 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 the can buy
insurance at costs that are lower than the costs associated with the experience rating for
their age.
The City subsidizes the premium rates paid by retirees by allowing them to participate in
the plan at blended group (implicitly subsidized) premium rates for both 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 following employees were covered by the benefit terms as of October 1, 2019, the
latest actuarial valuation date:
Retirees and beneficiaries currently receiving benefits
Active employees
Total
27
207
234
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
blended costs of the various options for calendar year 2019 were $486 for individual
coverage, and $618 for family coverage, and $298 for the Medicare supplement plan.
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