During a recent government meeting, discussions centered on the financial health of the Omaha Public Power District (OPPD) and its pension plan. OPPD is facing a significant rate increase that will affect most ratepayers. This increase raises concerns about the resources available to meet obligations, particularly regarding the pension plan.

The OPPD representatives confirmed that they are committed to making 100% of the actual contributions to the pension plan. Currently, OPPD's pension plan is funded at 74.4%. To reach an 80% funding level, an additional $102.2 million is needed. The representatives emphasized that while employee contributions have risen, OPPD's contributions have not kept pace, leading to questions about the reliance on employee funding.

The meeting also addressed the potential for cost-of-living adjustments (COLA) for retirees. OPPD officials stated that there are no plans for a COLA at this time, as their primary focus is on fully funding the pension plan. They noted that implementing a COLA could significantly impact rates for current customers, estimating that even a 1% adjustment could lead to a $15 million increase in rates.

Additionally, the meeting highlighted the salaries of OPPD's executive leadership team and the importance of competitive compensation to retain employees. The team consists of 11 members with a combined salary of $4.7 million. OPPD conducts annual performance assessments and market adjustments to ensure their salaries remain competitive with both public and investor-owned utilities.

The meeting concluded with a discussion on the Omaha Police and Fire Retirement System, which has undergone significant reforms since its funding dropped below 43% after the 2008 recession. The reforms aimed to balance contributions between the city and employees, with current contributions set at approximately 33.8% for the city and 16.6% for employees.

Overall, the meeting underscored the ongoing challenges OPPD faces in managing its pension obligations while ensuring affordable rates for consumers.