2024 Annual Comprehensive Report

each of the benefits in the Plan is available, if enrolled at the time of the employee’s retirement, at full cost to the retiree, with the exception of certain life insurance coverage. In addition, if the retiree ceases to have coverage or dies, dependent coverage will terminate. The City Council may amend the benefit provisions with a resolution. The City has elected to partially pre-pay the future overall cost of coverage for these benefits by establishing a Trust arrangement according to General Statutes 159 30.1(b). Management of the plan is vested in three Trustees, the City Manager, the Director of Finance and the Director of People and Culture, appointed by the City Council. The plan which has a June 30, 2024 year end does not issue a standalone financial report and is included in the City’s Annual Comprehensive Financial Report as Other Postemployment Benefit Trust Fund.

Plan Membership Membership of the Plan consisted of the following at June 30, 2022, the date of the latest actuarial valuation:

Membership Group

Number

Inactive Employees or Beneficiaries Currently Receiving Benefits

2,001

Inactive Members Entitled To But Not Yet

-

Receiving Benefits

Active Employees

2,911

Total Membership

4,912

Summary of Significant Accounting Policies Postemployment claims and premiums expenditures are made from the Employee Risk Retention Fund (Internal Service Fund), which is maintained on the accrual basis of accounting. Internal charges are made to various other City funds for the respective active employees, based upon the pre-determined City contribution rate. Short-term money market instruments and deposits are reported at cost or amortized cost, which approximates fair value as of June 30, 2024. Certain longer term securities are valued at estimated market value, as determined by the State Treasurer. Administration costs of the OPEB Investment Fund are determined by inter-agency agreement with the North Carolina Department of State Treasurer. Contributions The City will contribute toward the cost of the eligible retiree health and life insurance coverage based on the years of service at retirement. Dental coverage is provided at full cost to the retiree. The City has chosen to fund the healthcare benefits on a pay-as-you-go basis, with additional amounts contributed to prefund benefits, determined annually by management, not as a measure of pay. The current Actuarially Determined Contribution (“ADC”) or $12,071,092 is 6.0% of annual covered employee payroll. For the current year, the City contributed $5,788,531 (or 2.87% of annual covered employee payroll) toward actual benefit payments. The City obtains health care and dental coverage through a self-funded program and through a private insurer for life insurance benefits. The City’s obligation to contribute to the Plan is established and may be amended by the City Council during the budget process per the City annual budget ordinance. Determination of the amounts contributed by the City and retirees is made by the Employee Benefit Executive Committee, annually, upon review of current costs and trends. The Plan is accounted for as an OPEB Benefit Trust Fund.

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