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Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2010
<br />NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
<br />A. Plan Description - Continued
<br />The retiree has the option to continue with the County group health plan or elect the Medicare
<br />Advantage Plan. The subsidy will apply to either plan. At October 1, 2009, the date of the latest
<br />actuarial valuation, plan participation consisted of:
<br />Active participants 1,452
<br />Retired participants 286
<br />Total participants 1.738
<br />There are two classes of participants at October 1, 2009:
<br />Regular and senior management 1,153
<br />Special risk 585
<br />Total participants 1.738
<br />Financial statements for the IRCOT are included in this report and can be found on pages 40-41. A
<br />separate, stand-alone financial report is not issued by the County. The IRCOT investments can be
<br />found in Note 4D.
<br />B. Funding Policy
<br />The Board of County Commissioners, in concert with the OPEB Board of Trustees, has the authority to
<br />establish and amend the funding policy of the OPEB Plan. The IRCOT is advance funded by the
<br />County. For the year ended September 30, 2010, the County contributed $3.03 million to the qualifying
<br />IRCOT. Plan members receiving benefits contributed $0.95 million or approximately 38 percent of
<br />total premiums. It is the County's policy to base future IRCOT contributions on the annual required
<br />contribution (ARC) in subsequent annual actuarial reports. Custodial and individual fund administrative
<br />fees are paid from the portfolio dividend and interest income.
<br />C. Annual OPEB Cost and Net OPEB Obligation
<br />The employer's contribution (i.e. annual cost or expense) to the County's IRCOT is based on the ARC
<br />calculation. The ARC is an amount actuarially determined in accordance with the parameters of GASB
<br />Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
<br />to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to
<br />exceed 20 years. The following table shows the components of the County's annual IRCOT cost for the
<br />year, the amount actually contributed, and the changes in the net obligation.
<br />Annual Required Contribution
<br />Interest on Net OPEB Obligation
<br />Adjustment to Annual Required Contribution
<br />Annual OPEB Cost (expense)
<br />Contributions
<br />Change in Net OPEB obligation
<br />Net OPEB obligation — beginning of year
<br />Net OPEB obligation — end of year
<br />Percentage of Annual OPEB Cost Contributed
<br />FY 2009/2010 FY 2008/2009 FY 2007/2008
<br />$ 2,814,435
<br />(7,272)
<br />7,779
<br />2,814,942
<br />(3,030,792)
<br />(215,850)
<br />(103,880)
<br />$ (319,730)
<br />91
<br />107.67%
<br />$ 2,810,092
<br />(6,587)
<br />6,082
<br />2,809,587
<br />(2,819,373)
<br />(9,786)
<br />(94,094)
<br />$ (103,880)
<br />100.35%
<br />$ 2,626,254
<br />2,626,254
<br />(2,720,348)
<br />(94,094)
<br />$ (94,094)
<br />103.58%
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