Ordinance 2024-611 - Laserfiche WebLink

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CITY OF SUNNY ISLES BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 8 - OTHER POSTEMPLOYMENT BENEFITS PLANDESCRIPTION The City provides a single -employer, defined benefit, postemployment health insurance plan for employees and sworn officers. The plan allows its employees and their beneficiaries, at their own cost, to continue to obtain health, dental and vision insurance benefits upon retirement. In addition, retired sworn police officers with 20 or more years of service with the City receive a $500 a month stipend reduced to $250 a month for two years once the retired sworn police officer reaches age 65. If the employee has other health insurance coverage, they are not eligible. The benefits of the plan conform with Florida Statutes, which is the legal authority for the plan. The plan has no assets and does not issue a separate financial report. The Plan operates on a pay-as-you-go basis. FUNDING POLICYAND ANNUAL OPEB COST The City does not directly make a contribution to the plan on behalf of retirees. Retirees and their beneficiaries pay the same group rates as are charged to the City for active employees by its healthcare provider. However, the City's actuaries, in their actuarial valuation, calculate an offset to the cost of these benefits as an employer contribution, based upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the City for its active employees for coverage of the retirees and their dependents for the year, net of the retiree's own payments for the year. The annual OPEB cost is calculated based on the annual required contribution of the employer, an amount actuarially determined in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The annual required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed 15 years. As of October 1, 2021, the City had 264 covered employees. 3I