Laserfiche WebLink
CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2018 <br /> <br /> <br /> <br /> <br />All health care coverage is provided through the City’s group health insurance plans. The retiree is <br />required to pay 100% of their premium cost for the City-sponsored group health insurance plan in <br />which they participate. The premium is a blended rate determined on the entire active and retiree <br />population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, <br />the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those <br />afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer <br />and the City’s plan becomes secondary. <br /> <br /> <br />C. PARTICIPANTS <br /> <br />As of the January 1, 2018 actuarial valuation, participants of the plan consisted of: <br /> <br />Active employees 55 <br />Inactive employees or beneficiaries <br />currently receiving benefits 2 <br />Total 57 <br /> <br />D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY <br /> <br />The City’s total OPEB liability of $803,931 was measured as of December 31, 2017, and was <br />determined by an actuarial valuation as of January 1, 2018. Changes in the total OPEB liability during <br />2018 were: <br /> <br />Balance - beginning of year $704,204 <br />Changes for the year: <br />Service cost 60,682 <br />Interest 28,711 <br />Changes of benefit terms - <br />Differences between expected and actual experience - <br />Changes in assumptions 21,006 <br />Benefit payments (10,672) <br />Net changes 99,727 <br />Balance - end of year $803,931 <br /> <br />Changes in assumptions reflect a change in the discount rate from 3.78% in 2017 to 3.44% in 2018. <br /> <br />79