OPEB Retiree Health Trust Fund

At a glance

Based on auto-generated captions and the official minutes; figures may be misheard.

What: the City Auditor's annual report on the Other Post-Employment Benefits (OPEB) Trust Fund, which sets money aside for retiree health insurance.
Where it stands: the committee recommended filing the report 3-0 on 2026-09-15 (it had been held since 2026-04-14).
Next: the Annual Comprehensive Financial Report, which carries the OPEB figures, is still held.

Trust assets about $61.3 million at June 30, 2025; the CFO said they were in the $70 millions a year later.
Actuarial liability about $1.15 billion (peak about $1.5 billion in FY22), so roughly 5.35 percent funded; about 6.4 percent expected next year if the liability holds.
FY25 return about 9.6 percent (3-year 8.2, 5-year 9.6), invested in the state PRIT core fund.
FY25 contributions: about $1 million budgeted, $7.5 million from free cash, about $376,000 from the 1 percent employee contribution.
The City pays about $25 million a year (City and schools) for retiree health insurance, pay-as-you-go; retirees pay 25 percent.

Irrevocable trust with nine trustees: ex officio officials, appointees, and elected employee and retiree representatives (five-year terms).
Funding sources: the budget (about $1.2 million in FY27, rising about 10 percent a year), about 30 percent of free cash, and a 1 percent payroll deduction on new hires (started around FY23, on position turnover).
Eligibility: 10 years and vested in the pension system.
The pension must be fully funded by 2040 (City plan: 2034); the CFO said OPEB becomes the focus after that.
Rating agencies view the funding plan favorably; health insurance costs rose 8 percent this year.

About 24 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting	Minutes
2026-09-15 - Municipal and Legislative Operations Committee	24

2026-09-15 - Municipal and Legislative Operations Committee - Tim McGourthy presented in the absent auditor's place; questions from Morris A. Bergman (bond ratings), Gary Rosen (eligibility, premiums, the 1 percent) and Satya B. Mitra (spouses, trustees, PRIT, comparison with other places). Recommended filing 3-0.