Attachment A - Benefit Summary as of 04-17-2023.pdf
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- Solicitation number
- 23-FIN23
- Issued by
- Wisconsin
About this file
This is a Benefit Summary document for the City of Sun Prairie, Wisconsin, outlining the post-employment benefit eligibility and sick leave conversion policies for three employee categories: WPPA employees, IAFF employees, and all other employees. The document details the Other Post-Employment Benefits (OPEB) program requirements and structure as of April 17, 2023, in support of the City's request for actuarial valuation services.
WPPA employees must have a minimum of 20 years of service to be eligible for OPEB benefits, while IAFF employees and all other employees require a minimum age of 50 with 15 years of service, with the required age decreasing by one year for each additional year of service beyond 15 years. Upon retirement, eligible employees may convert unused accumulated sick leave into a Health Reimbursement Arrangement (HRA)—WPPA employees up to 140 days, IAFF employees up to 1,248 hours, and all other employees up to 120 days—to cover medical and dental premiums in the City's group health plan. Following HRA depletion, retirees may continue coverage by paying 100 percent of premiums through COBRA. The current eligible employee population totals 230, comprising 144 employees with family coverage, 52 with single coverage, and 34 with waived coverage. The City maintains a high-deductible health plan with a $3,000 family and $1,500 single deductible, with the City contributing 50 percent of deductibles semi-annually. Assumptions include that 25 percent of future retirees will elect medical coverage and will remain on the City's plan for approximately one year post-retirement before terminating coverage.
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Text version
City of Sun Prairie Post-Employment Benefit Summary
WPPA Employees
Eligibility OPEB
A minimum of 20 years of service with the City.
Sick Leave Conversion (Implicit Rate Subsidy Only): Upon retirement, unused accumulated sick leave shall be converted at the rate of pay at retirement up to a maximum of 140 days and placed into an HRA. These funds may be used for continued medical and dental premiums in the City’s group health plan.
Upon exhaustion of these funds; the retiree may choose to continue coverage in the City’s group health plan provided they self-pay the full (100%) premium amounts required to continue coverage in the plan for the duration of COBRA*.
Note: Spouses are eligible for coverage under the City’s health plan while the Retiree is covered.
*Unless recent history shows otherwise, it will be assumed that 25% of future retirees will elect medical coverage in retirement. Also, based upon prior valuations, it will be assumed that retirees using such sick leave conversion will provide means to remain on the City’s plan for one year after which the retirees will choose to terminate coverage.
IAFF Employees
At least age 50 with a minimum of 15 years of service with the City.
For each year of service beyond 15, the required age decreases by 1 year.
retirement up to a maximum of 1248 hours and placed into an HRA. These funds may be used for continued medical and dental premiums in the City’s group health plan.
Upon exhaustion of these funds; the retiree may choose to continue coverage in the City’s group health plan provided they self-pay the full duration of COBRA*.
*Unless recent history shows otherwise, it will be assumed that 25% of future retirees will elect medical coverage in retirement. Also, based upon prior valuations, it will be assumed that retirees using such sick leave conversion will provide means to remain on the City’s plan for one year after which the retirees will choose to
ATTACHMENT A
All Others
At least age 50 with a minimum of 15 years of service with the City.
For each year of service beyond 15, the required age decreases by 1 year.
retirement up to a maximum of 120 days and placed into an HRA. These funds may be used for continued medical and dental premiums in the City’s group health plan.
Upon exhaustion of these funds; the retiree may choose to continue coverage in the City’s group health plan provided they self-pay the full duration of COBRA.
*Unless recent history shows otherwise, it will be assumed that 25% of future retirees will elect medical coverage in retirement. Also, based upon prior valuations, it will be assumed that retirees using such sick leave conversion will provide means to remain on the City’s plan for one year after which the retirees will choose to
1. The City has a high deductible ($3,000 for family, $1,500 single) plan. The City contributes 50% of the deductible semi annually.
2. The current population of eligible employees is 230.
144 Family Coverage 52 Single Coverage 34 Waived Coverage
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