The State Retiree Health Insurance program, which is one of the other postemployment benefits (OPEB) plans offered by the State of Wisconsin to eligible retirees, is administered by the Wisconsin Department of Employee Trust Funds (ETF). OPEB refers to the benefits, other than pensions, that a state or local government employee may receive after they have left employment, generally upon retirement. The program offers retirees who are not yet eligible for Medicare the option to participate in the State’s Group Health Insurance program. Premiums are established and collected based on the current needs of the program, and assets are not accumulated to pay future benefits.
The Wisconsin Department of Administration (DOA) is responsible for preparing the financial statements of the State of Wisconsin, including calculating the total OPEB liability for the program. To assist state agencies, such as the University of Wisconsin (UW) System, and various authorities, including the UW Hospitals and Clinics Authority, in preparing their own financial statements following generally accepted accounting principles (GAAP), DOA prepared employer schedules and notes for the program.
We provided unmodified opinions on the Schedule of Employer Allocations of the State Retiree Health Insurance program, the total amounts in certain columns in the Schedule of OPEB Amounts by Participating Employer of the State Retiree Health Insurance program, and the related notes to these employer schedules as of and for the year ended June 30, 2025. We conducted our audit by auditing the employer schedules and related notes in accordance with applicable government auditing standards, issuing our auditor’s opinions, reviewing internal controls, and issuing our auditor’s report on internal control and compliance. We also retained an actuary to conduct an independent review of the program’s actuarial calculations and actuarial valuation report.
