NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 The Plan requires that the City and the participant each contribute 12% of the participant’s compensation. Participants are fully vested after five years of continuous service. City contributions for, and interest forfeited by, employees who leave employment before five years of service are used to reduce the Plan’s expenses. 186 employees were participants as of December 31, 2020. The required contributions for the City and PMPP employees amounted to $2,176,726 each (12% of covered payroll). The plan allows voluntary and roll over contributions by employees. The plan investments are maintained and administered by Fidelity Investments. 4) Executive Retirement Plan The City provides retirement benefits for the City Manager, the City Attorney, the Municipal Judge and Department Heads through separate defined contribution plans. The plans are administered by Fidelity Retirement Services. Qualified employees are eligible to participate from the date of employment. Under the plan, the City contributes an amount equal to 10.02% of the participant’s base salary. The employees covered by this plan were required to make an 8% contribution in 2020. Employees covered under these Plans are vested upon date of hire. Employees who leave employment with the City are entitled to all contributions and interest earnings. For the year ended December 31, 2020 the City contributed $245,957 for the benefit of the 15 participants in the Plan and the employees contributed $188,096, as required. E. Postemployment Benefits Other than Pensions Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources and expenditures and certain note disclosure and required supplementary information. Plan Description The City has established a single employer-defined benefit post-employment healthcare plan for eligible retirees, their spouses and dependents. All benefits are provided through the City’s self-insured health plan. The two optional benefits levels High Deductible Health Plan (HDHP) and Traditional Open Access – IN Plan (OAP-IN), are the same for retirees as those afforded to active employees. Benefits Provided The City provides retiree health program coverage to current and future retirees of the City who qualify for retirement. Members who terminate prior to retirement eligibility are not eligible to participate in the program. The election to participate in the plan must occur upon retirement. The retirement eligibility is based on the following requirements: Civilian employees (CARP retirement plan) must have completed 20 years of service, or must have completed five years of service and attained 59 ½ years of age. Sworn police officers (PMPP retirement plan) must have completed 20 years of service.
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