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Walworth County keeps OPEB portfolio at 50/50 allocation after review of remeasurement and quarterly report
Summary
The Finance Committee reviewed an actuarial remeasurement and a PFM quarterly report showing the county’s retiree health-care trust is overfunded and voted to retain a 50% equities/50% fixed-income target.
The Walworth County Finance Committee on Thursday reviewed an actuarial remeasurement of the county’s other post‑employment benefits (OPEB) and a quarterly investment report from PFM Asset Management LLC, and voted to keep the trust’s target allocation at 50% equities and 50% fixed income.
The committee was told the most recent remeasurement, based on actuarial data as of Dec. 31, 2024, shows about $8,000,000 in OPEB liabilities and roughly $29,200,000 in plan assets, leaving a net overfunded position of about $21,000,000. The county’s expected OPEB benefit payments for the coming year are about $800,000.
Todd, a county staff member presenting actuarial figures, summarized the remeasurement and participant trends. He said the OPEB plan is closed to new entrants (closed to new employees as of February 2006) and noted the pool of participants has steadily declined from about 941 in February 2005 to roughly 183 now.
A representative of PFM Asset Management LLC told the committee the portfolio totaled about $31.6 million as of March 31, 2025, and produced a positive one‑year return of roughly 5.5% and a since‑inception annualized return near 6.7%. The presentation noted the portfolio is invested as a “stock/bond” mix (approximately 50/50) with targets of 33% domestic equity and 17% international equity within the equity sleeve.
Committee members asked about fees and reporting. The PFM representative said the county pays an investment advisory fee (approximately 0.15% annually, described as a declining schedule) that is paid from the OPEB trust; he also noted the returns shown in some presentation tables were gross of the advisory fee but net of underlying mutual fund fees.
After discussion, Supervisor Karbowski moved to keep the current 50/50 target allocation and the committee voted in favor. Finance staff said the investment policy allows +/- 10 percentage points for tactical adjustments (a range of 40/60 to 60/40) without returning to the committee.
The committee received the actuarial remeasurement and the PFM quarterly report for the record and did not adopt any change to the investment policy at the meeting.
The vote to retain the allocation was unanimous and the county will continue to receive semiannual and annual updates on performance and actuarial status.
