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Commissioners approve change to retiree health benefits; actuary says OPEB remains funded above 100%
Summary
The board approved Resolution 2025‑024 to amend retiree health care rules after an actuarial review by Bolton Partners showing the county's OPEB fund would remain above 100% funded under the proposed changes; new pre‑65 subsidy tiers and protections for current retirees were adopted and an effective date around Sept. 1 was discussed.
Caroline County commissioners approved Resolution 2025‑024 on Aug. 5 to amend personnel rules governing retiree health benefits after a presentation by OPEB board members and county staff. Sherry (last name not specified) summarized an actuarial study by Bolton Partners that analyzed the effect of adding a pre‑65 health insurance subsidy for retirees and standardizing benefit tiers for future retirees.
Staff described the proposal as preserving benefits for current retirees who had not taken an HRA or Medicare supplement and establishing a tiered subsidy for new retirees based on years of service: employees with 25+ years would receive 85% of the individual premium, 20–24 years 75%, and 15–19 years 65%; the county said the subsidy would continue post‑65 for Medicare supplement coverage. Bolton Partners reported that the liability would increase from about $6.2 million to $7.6 million under the proposal, and projected funding would remain at about 131% of liabilities using current asset levels.
Commissioners asked staff about solvency risk and whether the changes would require general fund contributions; staff said the actuarial projections did not require annual county contributions and that conservative assumptions had been used. Staff noted that the county has budgeted $10,000 in grant funds for potential legal counsel and that the effective date for the change could be Sept. 1 if the board proceeds.
A motion to approve Resolution 2025‑024 passed by voice vote; the record reflects unanimous approval. Commissioners directed staff to notify eligible retirees and proceed with implementation tasks tied to payroll and benefits administration.
