Page 98 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 9. Other Post Employment Benefits (OPEB)

Plan Description

The City’s defined benefit postemployment healthcare plan provides a portion of certain
health care for retired employees. In accordance with City policy, employees hired prior to
September 30, 2011, who retire directly from the City under CalPERS (age 50 and 5 years
of CalPERS service or disability) and are not temporary employees, are eligible for these
benefits. In June 2009, the City established an irrevocable trust fund to begin funding the City’s
unfunded liability through the California Employers’ Retiree Benefit Trust (CERBT), an agent
multiple-employer plan administered by CalPERS, which acts as a common investment and
administrative agent for participating public employers within the State of California. A menu
of benefit provisions, as well as other requirements, are established by state statutes within
the Public Employees’ Retirement Law. The City selects optional benefit provisions from the
benefit menu by contract with CalPERS and adopts those benefits through local ordinance.
The City administers a single-employer defined-benefit post-employment healthcare plan.
Benefits vary by hire date and employment status (Management or Non-Management).
Benefits continue to the surviving spouses.

CalPERS issues a separate annual comprehensive financial report. Copies of the CalPERS
annual financial report may be obtained from the CalPERS Headquarters, 400 Q Street,
Sacramento, California 95811.

Benefits Provided

The Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum amount for retirees
participating in PEMHCA is $151 per month for 2025 PEMHCA amounts are adjusted on an
annual basis.

An additional $318.73 per month will be paid for medical, dental, and vision for full-time
employees hired and for City Council elected before September 30, 2011. The total subsidy
will not be greater than the premium for the retiree and spouse. Coverage is allowed under
any medical plan.

Employees Covered by Benefit Terms

At June 30, 2024 (the census date), the following employees were covered by the benefit terms:

Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments: 189
Inactive employees entitled to but not yet receiving benefit payments: 76
Active employees: 364

Contributions

The City establishes contributions based on the Actuarially Determined Contribution (ADC).
For the year ended June 30, 2025, the City’s ADC contribution rate was 11.42% of covered-
employee-payroll. Employees do not contribute to the plan, but instead pay the difference
between the benefit that they receive and the monthly premium for that benefit.

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