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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />I. PENSION PLAN FIDUCIARY NET POSITION <br /> <br />Detailed information about the Volunteer Firefighter Fund’s fiduciary net position as of June 30, 2022, is available in a <br />separately-issued PERA financial report that includes financial statements and required supplementary information. That <br />report may be obtained at www.mnpera.org. <br /> <br /> <br />Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) <br /> <br />A. PLAN DESCRIPTION <br /> <br />In addition to providing the pension benefits described in Notes 7 and 8, the City provides post-employment health care <br />benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined <br />benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes <br />Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are <br />governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements <br />with employee groups. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. <br />The plan does not issue a stand-alone financial report. <br /> <br /> <br />B. BENEFITS PROVIDED <br /> <br />The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the <br />individual terminates service with the City through service retirement or disability retirement. Active employees, who retire <br />from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and <br />their eligible dependent(s) under the City’s health benefits program until age 65. <br /> <br />The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty in accordance with <br />Minnesota Statute 299A.465. The amount of coverage provided is equal to the employer portion of health insurance <br />premiums that would have otherwise been paid if the officer or firefighter was an active employee. <br /> <br />All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of <br />their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended <br />rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended <br />premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as <br />those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s <br />plan becomes secondary. <br /> <br /> <br />C. PARTICIPANTS <br /> <br />As of the January 1, 2023 actuarial valuation, participants of the plan consisted of: <br /> <br />Active employees 65 <br />Inactive employees or beneficiaries <br />currently receiving benefits 5 <br />Total 70 <br /> <br />73 <br />80