Portsmouth retirement funds: OPEB 56% funded; pension plan 71.5% after 2024; board to review assumptions

Portsmouth officials received updates on retiree benefit finances and investment performance at the retirement board meeting, where staff said the city's retiree health trust (OPEB) was 56% funded and the pension plan's funded status was 71.5% as of Dec. 31, 2024.

The discussion focused on when OPEB would cover benefit payouts instead of the general fund, the actuary's assumed investment return, recent portfolio changes and manager performance. Board members and consultants also described a partial real-estate exit that returned cash for benefit payments.

Trey, a staff member, reported the OPEB account was "at a 56% funded status with a $19,000,000, $19,400,000 liability and a $10,900,000, asset." He said he did not know of any current benefit payments being made from the OPEB assets and that roughly $1.2 million a year had been paid in benefits but the source (OPEB assets versus general fund) was not clear from the materials he had. Trey told the board he would follow up with BACO and provide a projected fully funded date by the board's next meeting.

Jim, an investment consultant, framed…