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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANClAL STATEMENTS December 31, 2014 B. Benefits Provided (Continued) Retirees The City is required by State Statute to allow retirees to continue participation in the Ciry's group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Employees who satisfy the rule of 90 or attain age 55 and have completed 10 years of service at termination can immediately commence medical bene�'its. Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered spouses may continue coverage after the retiree's death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee's death. All health care coverage is provided through the City's group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premiuin is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the City's plan becomes secondary. Disabled �olice and firefighter The City continues to pay the employer's contribution toward health coverage for Police or Firefighters disabled in the line of duty per Minnesota Statute 299A.465, until age 65. Dependent coverage is included, if the dependents were covered at the time of the disability. The January 1, 2014 to December 31, 2014 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Plan Health Partners Choice Health Partners National One Heath Partners Empower High Deductible C. Participants Single Two Person Family $ 519 $ 1,015 $ 1,411 $ 496 $ 972 $ 1,346 $ 360 $ 714 $ 970 As of the actuarial valuation dated January 1, 2014, participants consisted o£ Retirees and beneficiaries currently purchasing health insurance tYirough the City Disabled police and firefighters Active Employees Total 67 13 160