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Note 5: Postemployment Benefits Other Than Pensions <br />A. Plan Description <br />At December 31, 2024, the following employees were covered by the benefit terms: <br />Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 2 <br />Active Plan Members 60 <br />Total Plan Members 62 <br />B. Funding Policy <br />C. Actuarial Methods and Assumptions <br />Discount Rate 3.77 <br />Expected Long-Term Investment Return N/A <br />20-Year Municipal Bond Yield 3.77% <br />Inflation Rate 2.60% <br />Salary Increases N/A <br />Medical Trend Rate 7.75% degrading to 6.55% by 2028 <br />City of Orono <br />Notes to the Financial Statements <br />December 31, 2024 <br />The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers <br />medical coverage, and to obtain requests for proposals in order to provide the most favorable benefits and premiums for <br />City employees and retirees. The City does not issue a publicly available report. <br />Retirees receiving benefits contribute 100 percent of their premium costs. Retirees and their spouses contribute to the <br />health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. <br />Contribution requirements are established by the City, based on the contract terms with HealthPartners, Inc. The required <br />contributions are based on projected pay-as-you-go financing requirements. There are no assets accumulated in a trust. <br />For the year ended December 31, 2024, the City's average contribution rate was 14 percent of covered-employee payroll. <br />For the fiscal year 2024, the City did not directly contribute to the plan. The General fund is typically used to liquidate the <br />governmental portion of the net OPEB obligation. <br />determined by an actuarial valuation as of December 31, 2023. Roll forward procedures were used to roll forward the <br />total OPEB liability to the measurement date. <br />The total OPEB liability in the December 31, 2023 actuarial valuation was determined using the following actuarial <br />assumptions, applied to all periods included in the measurement, unless otherwise specified: <br />80 107