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HomeMy WebLinkAbout4-28-26 Memo_4Q.2025-Feb.2026 Financial StatusNA- CE IDIAN:--- MEMORANDUM DATE: APRIL 28, 2026 TO: MAYOR AND CITY COUNCIL FROM: CITY OF MERIDIAN EMPLOYEE BENEFITS PLAN TRUST BOARD RE: CITY OF MERIDIAN EMPLOYEE BENEFITS PLAN TRUST: 2025 Q4-FEBRUARY 2026 FINANCIAL STATUS Purpose: Update the Mayor and City Council on the financial status of the City of Meridian Employee Benefits Plan Trust. Current Financial Summary: 2025 Q4 (October 1, 2025 — December 31, 2025) • Total Surplus at end of quarter $2,589,727 • Minimum Surplus Requirement $2,243,701 • Reserves $346,026 January 1, 2026 — February 28, 2026: • Medical and Pharmacy: Down 15% • Medical claims: Down 23% • Pharmacy: Up 5.5% PEPM • The net loss ratio has improved to 89% Claims are stabilizing slightly and the increase in the contributions is ensuring minimum surplus is being met on a month -to -month basis. Rolling 12 months total costs are just up 1.3%, total claims are up 4.9%, but are mitigated by the 2026 increases to the plan contributions. Trust Board reviewing additional plan design changes for 2027 to assist with mitigating additional increases. Recommendation: Perform a market check so we can demonstrate due diligence through actuarial validation and targeted market testing without exposing the plan to unnecessary disruption.