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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
30
Note 10—Other postemployment benefits – VRS Group Life Insurance Program (“GLI”)
Plan Description – In addition to their participation in the pension plans offered through the VRS, the Commission
also participates in the VRS GLI OPEB (“GLI”) plan, which is a multiple-employer, cost-sharing plan providing
coverage to state employees, teachers, and employees of participating political subdivisions. The GLI was
established pursuant to Section 51.1-500 et seq. of the Code of Virginia, as amended, and which provides the
authority under which benefit terms are established or may be amended. The GLI is a defined benefit plan that
provides a basic group life insurance benefit for employees of participating employers. For purposes of measuring
the net GLI OPEB liability, deferred outflows of resources, and deferred inflows of resources related to the GLI
OPEB, and GLI OPEB expense, information about the fiduciary net position of the VRS GLI OPEB, and the
additions to/deductions from the VRS GLI OPEB’s fiduciary net position have been determined on the same basis
as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
In addition to the basic GLI benefit, members are also eligible to elect additional coverage for themselves as well
as a spouse or dependent children through the optional GLI. For members who elect the optional group life
insurance coverage, the insurer bills employers directly for the premiums. Employers deduct these premiums from
members’ paychecks and pay the premiums to the insurer. Since this is a separate and fully insured program, it
is not included as part of the GLI OPEB.
Specific information for the GLI is available at https://www.varetire.org/members/benefits/life-insurance/basic-
group-life-insurance.asp.
Contributions – The contribution requirements for the GLI program are governed by Sections 51.1-506 and
51.1-508 of the Code of Virginia, as amended, but may be impacted as a result of funding provided to state
agencies and school divisions by the Virginia General Assembly. The total rate for the GLI program was 1.34% of
covered employee compensation. This was allocated into an employee and an employer component using a 60/40
split. The employee component was 0.80% (1.34% x 60%) and the employer component was 0.54%
(1.34% x 40%). Employers may elect to pay all or part of the employee contribution; however, the employer must
pay all of the employer contribution. Each employer’s contractually required employer-contribution rate for the
year ended June 30, 2024, was .54% of covered employee compensation. This rate was based on an actuarially
determined rate from an actuarial valuation as of June 30, 2022. The actuarially determined rate, when combined
with employee contributions, was expected to finance the costs of benefits payable during the year, with an
additional amount to finance any unfunded accrued liability. Contributions to the GLI program from the
Commission were $11,754 for the year ended June 30, 2024.
GLI OPEB Liability, Expense, and Deferred Inflows and Outflows of Resources Related to the GLI Program – The
net GLI OPEB liability was measured as of June 30, 2023 and the total GLI OPEB liability used to calculate the
net GLI OPEB liability was determined by an actuarial valuation performed as of June 30, 2022, and rolled forward
to the measurement date of June 30, 2023. The covered employer’s proportion of the net GLI OPEB liability was
based on the covered employer’s actuarially determined employer contributions to the GLI program for the year
ended June 30, 2024, relative to the total of the actuarially determined employer contributions for all participating
employers.
June 30, 2023 proportionate share of liability
$135,762
June 30, 2023 proportionate share of contributions
0.011320%
June 30, 2022 proportionate share of contributions
0.011520%
June 30, 2023 expense
$2,355
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