Orange County NC Website
Browse       Search
ORANGE COUNTY ABC BOARD—AGENDA FORM <br /> Meeting Date: October 22, 2024 Agenda Item# 7 <br /> Regular Session X <br /> Closed Session <br /> Presenter/Information Contact: Ron McCoy/Taylor Jackson/Angela Willoughby <br /> Subject: Proposed Revision to Other Post Employment Benefits (OPEB)Policy <br /> Attachment(s): <br /> 1. Attachment REVISED "OPEB"Policy <br /> Brief Summary/Explanations: <br /> Historically, the Board has provided full medical insurance coverage for full-time retirees at <br /> least 55 years old with more than 20 years of service. At age 65, full medical benefits for retirees are <br /> replaced by a Blue Cross Blue Shield"medigap"supplement. <br /> In 2008, the Board implemented a sliding scale of insurance premium reimbursements for <br /> those employees hired after March 18, 2008. As no end date to the policy was established, the policy <br /> has remained open-ended and potentially applicable for all active full-time employees. <br /> Due to GASB regulations, the potential financial liability for these obligations must be <br /> calculated by actuaries annually. These future financial commitments affect the Board in the present <br /> as the actuaries calculate the necessary funds to be set aside each year to meet the potential obligation. <br /> Annual OPEB Obligation per Actuary: <br /> 2025 $176,627 <br /> 2024 $162,149 <br /> 2023 $138,149 <br /> 2022 $131,549 <br /> 2021 $113,149 <br /> The Orange County ABC Board is one of a few government units to offer medical coverage <br /> for employees after retirement. Government agencies who still carry this benefit have established <br /> definitive ending dates for their programs. Orange and Durham counties ended the benefit on July 1, <br /> 2008. Wake County and the NC State system ended the benefit on January 1, 2021. <br /> By revising the present scale of medical reimbursements and establishing a definitive end- <br /> date for the policy, the revised OPEB policy will continue to provide medical insurance for current <br /> and qualifying retirees and to offer reimbursements for medical insurance premiums for qualifying <br /> employees in the future, <br /> Action Requested: <br /> 1. Review and discuss as needed. <br /> 2. Vote approval of revised policy. <br /> Financial Impact: See Above <br /> Staff Recommendations/Comments: None <br /> Page 1 of 3 pages <br />