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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2021 <br />IV. Detailed Notes on All Activities and Funds (Continued) <br />G. Other Post Employment Benefit (OPEB) Obligations (Continued) <br />1. Supplemental Death Benefits Fund (Continued) <br />Benefits <br />The death benefit for active employees provides a lump -sum payment approximately equal to the employee's <br />annual salary (calculated based on the employee's actual earnings, for the 12 -month period preceding the month <br />of death). The death benefit for retirees is considered an "other post -employment benefit" (OPEB) and is a fixed <br />amount of $7,500. As the SDBF covers both active and retiree participants with no segregation of assets, the <br />SDBF is considered to be an unfunded OPEB plan (i.e., no assets are accumulated). <br />Employees Covered by Benefit Terms <br />At the December 31, 2020 valuation and measurement date, the following employees were covered by benefit <br />terms: <br />Inactive employees or beneficiaries currently receiving benefits 178 <br />Inactive employees entitled to but not yet receiving benefits 46 <br />Active employees 234 <br />Total 458 <br />Contributions <br />Contributions are made monthly based on the covered payroll of employee members of the participating member <br />city. The contractually required contribution rate is determined annually for each city. The rate is based on <br />mortality and service experience of all employees covered by the SDBF and the demographics specific to the <br />workforce of the City. There is a one-year delay between the actuarial valuation that serves as the basis for the <br />employer contribution rate and the calendar year when the rate goes into effect. The funding policy for the SDBF <br />program is to assure that adequate resources are available to meet all death benefit payments for the upcoming <br />year; the intent is not to pre -fund retiree term life insurance during employees' entire careers. <br />Employees of the City were not required to contribute to the OPEB plan during the fiscal year. The contribution <br />rates for the City were 0.25% and 0.36% of gross earnings in calendar year 2020 and 2021. The City's <br />contributions to TMRS SDBF for the year ended September 30, 2021 were $39,141 and were equal to the <br />required contributions. <br />W <br />