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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2016 <br />NOTE 13 - RETIREMENT PLAN - Continued <br />Retiree Health Insurance Subsidy (HIS) Program <br />Plan Description: The HIS Program is a cost-sharing, multiple -employer, defined benefit pension plan <br />established to provide a monthly subsidy payment to retired members of any state -administered <br />retirement system. It was established under Section 112.363, Florida Statutes. Benefits are not <br />guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or <br />available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or <br />canceled. HIS is administered by the Florida Department of Management Services, Division of <br />Retirement. <br />Benefits Provided: For fiscal year ended September 30, 2016, eligible retirees and beneficiaries <br />received a monthly HIS payment of $5 for each year of creditable service completed. The payments are <br />at least $30 but not more than $150 per month. To be eligible to receive a HIS benefit, a retiree under a <br />state -administered retirement system must provide proof of health insurance coverage, which may <br />include Medicare. <br />Contributions: The HIS Program is funded by required contributions from FRS participating employers <br />as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all <br />active FRS members. For the fiscal year ended September 30, 2016,.the HIS contribution rate was <br />1.66%. There are no employee contributions required. The County contributed 100% of its statutorily <br />required contributions for the current and preceding three years. HIS contributions are deposited in a <br />separate trust fund from which payments are authorized. The County's contributions to the HIS <br />Program totaled $1,198,477 for the fiscal year ended September 30, 2016. <br />Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of <br />Resources Related to HIS Program: At September 30, 2016, the Division of Retirement calculated the <br />County's liability of $26,578,559 for its proportionate share of the HIS Program's net pension liability. <br />The net pension liability was measured as of June 30, 2016, and the total pension liability used to <br />calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. At <br />September 30, 2016, the County's proportion share was 0.2281% for the HIS Program. This was an <br />increase of 0.0049% from its proportionate share measured as of June 30, 2015. <br />90 <br />