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Federated board receives final OPEB valuation showing funded ratio improvement and smaller unfunded liability
Summary
The San Jose Federated Retirement System received a final valuation for its retiree health (OPEB) plan showing the funded ratio rose to 64.3% and the unfunded actuarial liability fell to $230 million; trustees voted unanimously to receive the report and to review funding policy again in coming years.
The San Jose Federated Retirement System board unanimously voted Jan. 16 to receive the final actuarial valuation of its other post-employment benefits plan (OPEB), which shows a funding improvement driven by investment gains and continued employer contributions.
Actuarial consultants from Chiron presented the results. The valuation covers liabilities and assets through fiscal year 2024 and develops the city’s contribution requirement for fiscal 2026, not member contribution rates, which remain fixed at 7.5% of pay for eligible employees.
Consultant Bill (Chiron) and Jackie King (Chiron) told trustees the OPEB plan’s actuarial value rose and the funded ratio increased from 59.1% to 64.3% over the year. The plan’s unfunded actuarial liability fell from $259,000,000 to $230,000,000, a change driven largely by investment earnings and higher-than-minimum employer contributions, the consultants said.
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