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<br /> 96 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 13 – POST EMPLOYMENT HEALTH CARE PLAN <br /> <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 <br />City's group health insurance plans, which cover both active and retired members. Since the premium <br />is a blended rate determined on the active and retiree population , the retirees are receiving an <br />implicit rate subsidy. The MRHP does not issue publicly available financial reports. No assets are <br />accumulated in a trust. <br /> <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 <br />of retiree coverage. As a result, there is no implicit subsidy for these benefits. There is also no <br />explicit subsidy since retirees must pay the full premium to remain covered during retirement. <br /> <br />B. Funding Policy <br />Contribution requirements are reviewed at the time changes are made to the plans. Benefit <br />provisions for MRHP are established and amended by the City. Eligible retirees receiving benefits are <br />required to pay 100% of the total premium. <br /> <br />C. Members <br />As of the valuation date of January 1, 2023, the following were covered by the benefit terms: <br /> <br />Active employees electing coverage 135 <br />Retirees receiving payments 7 <br />Spouses receiving payments 4 <br />Total 146 <br /> <br />Page 286 of 637