K. Post-Employment Benefits Other than Pensions (OPEB)

City Council · 2026-04-21 · agenda_item

The City of West Melbourne is reviewing its plan for post-employment benefits other than pensions (OPEB), specifically focusing on health care benefits for retirees. This plan is a single-employer benefit plan where retirees can participate in the city's group medical insurance plan. While retirees pay the full premium, the ability to access group rates is considered an economic benefit, creating an OPEB obligation for the City. The City currently funds this obligation on a pay-as-you-go basis, covering its portion of current year benefit costs. This item is currently under review by the City Council. The scope of work involves financial reporting and actuarial analysis related to these benefits. Future phases may involve adjustments to the funding policy or benefit provisions. Local businesses in financial consulting, accounting, and legal services may find opportunities related to the ongoing management and potential adjustments of this OPEB plan. Early engagement could provide insight into the City's needs as they manage this financial obligation.