H. Post-employment benefits other than pensions (OPEB) (continued)

City Council Meeting · 2026-04-28 · agenda_item

This agenda item concerns the City of Groveland's other post-employment benefits (OPEB) plan. As of September 30, 2022, no trust has been established for these benefits. The plan currently covers 157 active members. The city is reviewing actuarial assumptions, including a projected annual salary increase of 3.00% and a discount rate of 4.59%. Healthcare cost trend rates are projected to start at 7.00% and decrease to 4.50% over two years. This item is under review by the City Council. The review involves actuarial valuations and financial reporting, which may lead to future funding decisions or adjustments to the plan. This process could eventually involve financial services, actuarial consulting, and potentially investment management services as the plan develops. Businesses in these sectors may find opportunities by engaging early before final decisions are made.

plan membership

157 active members

salary increase

3.00 %

discount rate

4.59 %

initial healthcare cost trend rate

7.00 %

ultimate healthcare cost trend rate

4.50 %