10.03 Post-Employment Benefit Valuation Report

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Summary of Plan Provisions Following is a summary of the major plan provisions used to determine the plan's financial position. It should not be used in determining plan benefits. . . . � - . . . � • . . Source of Plan Provision Infortnation Contract effective January 1,2016 Employee beneflts policy effedive October3,2017 Access to Group Insurance Eligibility Age• 50 55 Service"* 5 5 MonthlyBlendedPremium Medical 2018premiumis$641forsingleandS922forfamily/ValuedtoMedipreEligibfiity Subsidized Benefits Medipl Eligibility Age 50(andeligibleforPERAannuity) 62 Service 15 15 Retiree Benefit 50'/(100'/with 75 years of service)of the active 50'/(100'/with 25 years of service)of the active contribution to medical premium for 3 years or until contribution to the medical premium until Medicare eligibility,whichever is earlier Medicare eligibiflty 2018 City Contribution to medical insurance is 85% 2018City Contribution to medical insurance is 85% ofthe premium ofthe premium Spouse Benefit None None Der�tal None arM Lffe " The access to medical,dental,and Iife insurance for reUrees could possfbly happen prior to age 55(due to certain pension provisfons). For OPEB valuation purposes,we have assumed the flrst access eligibility ages to be 50 and 55,respectively. •* Service requirement is 3 years for employees hired before luly 1,2030. For Police and Fire employees hired after June 30,2014,the service requirement is 10 years.The effect of this vesting change as of January 1,2018 is immateri�l and is not included in this report. Chanaes stnce prior valuation: • The years of service required to be eligible for a benefit(implicft rate subsidy)was increased from three years to five years. • The crty contribution for union employees changed to 85%of the premium. Also,union employees are now on the same medical plan as other city employees rather than the Teamsters Local 346 plan. City of Pequot Lakes Page 19