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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2017 NOTE 13 - RETIREMENT PLAN - Continued Retiree Health Insurance Subsidy (HIS) Program Plan Description: The HIS Program is a cost-sharing, multiple -employer, defined benefit pension plan established to provide a monthly subsidy payment to retired members of any state -administered retirement system. It was established under Section 112.363, Florida Statutes. Benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. HIS Program is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided: For fiscal year ended September 30, 2017, eligible retirees and beneficiaries received a monthly HIS Program payment of $5 for each year of creditable service completed. The payments are at least $30 but not more than $150 per month. To be eligible to receive a HIS Program benefit, a retiree under a state -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions: The HIS Program is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2017, the HIS Program contribution rate was 1.66%. There are no employee contributions required. The County contributed 100% of its statutorily required contributions for the current and preceding three years. HIS Program contributions are deposited in a separate trust fund from which payments are authorized. The County's actuarial contributions to the HIS Program totaled $1,262,482 for the fiscal year ended September 30, 2017. Pension Liabilities, Pension Expense, and Deferred Ou flow of Resources and Deferred Inflow of Resources Related to HIS Program: At September 30, 2017, the Division of Retirement calculated the County's liability of $25,383,666 for its proportionate share of the HIS Program's net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017. At June 30, 2017, the County's proportional share was 0.2374% for the HIS Program. This was an increase of 0.0093% from its proportionate share measured as of June 30, 2016.