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1 <br /> <br /> <br /> <br />' June 25, 2007 <br /> To: Board of County Commissioners <br />' From: Pamela S. Dubois, Deputy County Manager <br /> Subject: New Accounting Procedures for Other Post employment Benefits (OPEB), <br />' Retiree Health Insurance and Life Insurance <br /> The topic of this memo is to provide the history of retiree health insurance at Cabarrus <br />t County and the recent issuance of Governmental Accounting Standards Board (GASB) <br /> Statements 43 and 45 (financial reporting issues) ,which require governments that <br /> provide OPEB to report the liability that is accruing to retirees and potential retirees. The <br />' guidance does NOT require governments to pre-fund such plans, but simply to identify <br /> the cost of the plans themselves. <br />' History <br /> On July 1, 1997, the Board of County Commissioners approved aCounty- paid basic <br />' group health and life insurance coverage for employees who retire as members of the <br /> North Carolina Local Governmental Employees' Retirement System with at least their <br /> last ten (10) years of creditable service at Cabarrus County. This benefit is paid at the <br />' same level of active employees. It will be provided to retired employees until they <br /> become eligible for Medicare (or reach the age where they would have had such benefits <br /> if they had been qualified for Social Security). Employees qualifying for retirement in the <br /> North Carolina Local Governmental Employees' Retirement System with less than ten <br /> (10) years of service with Cabarrus County will receive health and life insurance <br /> coverage for 50% of the actual premium. <br />' The policy was modified by the Board, effective November 1, 2003 and now reads as <br /> follows: <br /> County will pay basic group health and life insurance coverage for employees who retire <br /> as members of the North Carolina Local Governmental Employees' Retirement System <br /> with at least the last twenty-five (25) of creditable service at Cabarrus County. This <br />' benefit is paid at the same level of active employees and is provided to retired employees <br /> until they become eligible for Medicare (or reach the age where they would have had <br /> such benefits if they had been qualified for Social Security). Employees qualifying for <br />' retirement in the North Carolina Local Governmental Employees' Retirement System <br /> <br />Attachment number 2 <br />' Page 309 of 320 <br />