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City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 12 — PENSION PLANS (CONTINUED) <br />Defined Benefit Pension Plan — Volunteer Firefighter's Relief Association (Continued) <br />G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources <br />Related to Pensions (Continued) <br />Year Ending <br />December 31, <br />2023 <br />2024 <br />2025 <br />2026 <br />2027 <br />Thereafter <br />Total <br />NOTE 13 — POST EMPLOYMENT HEALTH CARE PLAN <br />Pension Expense <br />Amount <br />$ (47,078) <br />(159,828) <br />(85,622) <br />(52,964) <br />(7,961) <br />(6,395) <br />A. Plan Description <br />The City provides other postemployment health insurance benefits for retired employees through a <br />defined benefit plan: Municipal Retirees Health Plan (MRHP), a single employer defined benefit <br />healthcare plan. The plan provides benefits for eligible retirees and their dependents through the City's <br />group health insurance plans, which cover both active and retired members. Since the premium is a <br />blended rate determined on the active and retiree population, the retirees are receiving an implicit rate <br />subsidy. The MRHP does not issue publicly available financial reports. <br />Elk River Municipal Utilities has switched to age -based medical premiums and no longer has an OPEB <br />liability. Since medical premiums are age -based, the premiums are equal to the expected true cost of <br />retiree coverage. As a result, there is no implicit subsidy for these benefits. There is also no explicit <br />subsidy since retirees must pay the full premium to remain covered during retirement. <br />B. Funding Policy <br />Contribution requirements are reviewed at the time changes are made to the plans. Benefit provisions for <br />MRHP are established and amended by the City. Eligible retirees receiving benefits are required to pay <br />100% of the total premium. <br />92 <br />