Page 63 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTE 11
NOTES TO THE FINANCIAL STATEMENTS
OTHER POST-EMPLOYMENT BENEFITS
General Information about the OPEB Plan:
Plan Description
The Authority’s defined benefit other post-employment benefits (OPEB) Plan, the
Birmingham Airport Retiree Medical and Life Insurance Plan (BARMLIP),
provides OPEB for all permanent full-time employees of the Authority. BARMLIP
is a single-employer defined benefit OPEB plan administered by the Authority.
Article III of the Lease and Use agreement with the City of Birmingham grants the
Authority the right to establish benefit terms and financing requirements.
Benefits Provided
The Authority provides healthcare and life insurance benefits for retirees. The
Authority adopted a policy to pay for the cost of post-employment health insurance
for eligible employees. Employees of the Authority must meet the following
eligibility requirements for pension benefits as defined by the City of Birmingham
Retirement and Relief System for retirement:
• Retirees with 30 years of service at any age
• Retirees with 5 or more years of service and age 60 or older
• Retirees receiving disability pension benefits
• Retirees with 25 or more years of service and age 55 or older
Retirees may elect to continue their health insurance coverage under the
Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA provides
the retirees with health insurance coverage generally for a period of 18 months.
Retirees may continue the same coverage (single or family) at the time of
retirement. The retiree must elect health insurance coverage under COBRA within
60 days of the retirement date.
Retirees who meet the eligibility requirements, as listed above, are entitled to
receive a subsidy amount equal to the amount the Authority pays for single
coverage for an active employee. Retirees may receive the subsidy until they reach
the age of 65, become Medicare eligible, are covered under another policy or
deceased. The benefits paid under this plan are reimbursements for the cost of
coverage, and proof of coverage is required.
The retiree is responsible for paying the applicable balance of the monthly health
insurance premium. The retiree may elect to have their portion of the health
insurance deducted from their monthly pension benefit or elect to mail a check to
the Authority by the 10th of each month for their portion. The plan also provides
all retirees with life insurance benefits in which the Authority pays 100% of the
premiums reducing by 50% at age 70.
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