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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2010 NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN A. Plan Description The Indian River County OPEB Trust (IRCOT) was established by resolution on September 23, 2008 for the Board of County Commissioners and the five constitutional officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector). The Indian River County Board of County Commissioners acts as the OPEB Board of Trustees and delegates the administration of the IRCOT to an OPEB Trust Board. The OPEB Trust Board consists of the Clerk of the Circuit Court, Budget Director, Finance Director, County Administrator, and Human Resources Director. Resolution 2008-163 gave authority to establish the IRCOT as a single -employer defined benefit plan (OPEB Plan). The IRCOT's financial statements are reported using the accrual basis of accounting. The IRCOT trustees can amend the benefit provisions. The OPEB Plan subsidizes the cost of health care for employees hired prior to February 1, 2006 and their eligible dependents according to the provisions of the substantive plan (the plan as understood by the employer and the plan members). Employees hired on or after February 1, 2006 will not be eligible for any subsidy, regardless of years of service or Medicare eligibility. Life insurance is available to retirees at a flat rate per $1,000 of coverage. The premium rate is contingent upon age and date of retirement. Only the implicit rate subsidy applies to retiree life insurance coverage since retirees are responsible for the full premium of their life insurance policy. Retired employees are permitted to remain covered under the County's medical and life insurance plans as long as they pay a premium applicable to the coverage elected. This conforms to the minimum required of Florida governmental employers per Florida Statute 112.0801. The implicit rate subsidy also applies to health insurance coverage since the premiums charged are based upon a blending of younger, active employees and older, retired employees. Active participants as well as retirees are subject to the same benefits and rules. Health insurance premiums, effective October 1, 2008, range from $198 for Medicare participants to $735 for family coverage. The County subsidizes the cost of the premiums for each retiree based upon their years of service and employment date; a 2% discount for each year of service based upon the following table: Retirement Date Years of Service Under Age 65 Medicare Eligible Before 01/01/04 N/A No subsidy 60% subsidy 01/01/04 - 10/01/04 Less than 15 years No subsidy 60% subsidy 01/01/04 - 10/01/04 15 or more years 2%/yr-max 40% 20% in addition to yrs of service - max 60% subsidy 10/01/04 - 01/31/09 Less than 15 years No subsidy 20% subsidy 10/01/04 - 01/31/09 15 or more years 2%/yr-max 40% 20% in addition to yrs of service - max 60% subsidy 02/01/09 and after Less than 15 years No subsidy No subsidy 02/01/09 and after 15 or more years 2%/yr-max 40% No subsidy all