Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension And Benefits topic
No spam. Unsubscribe anytime.
Board seeks legal opinion on Board of Education insurance withholding; OPEB and mill-rate implications discussed
Summary
Board members heard that auditors requested a legal opinion about withholding of employee premium cost shares by the Board of Education; the city retained outside counsel, city’s OPEB transfer (city portion) was approved while the Board of Education’s share awaits resolution of IBNR claims that will affect reserves and mill-rate setting.
Members of the Torrington Board of Finance pressed staff for financial clarity tied to several related items: a requested legal opinion about Board of Education insurance premium withholdings, the city’s OPEB contribution, and the effect of reassessment on the mill rate.
Treasurer Farley asked why the city had not yet made a contribution to the OPEB plan despite funds set aside. Olivia, a finance staff member, and the Chair explained that the city’s portion was approved in a prior Board of Finance transfer and will be paid from the internal service fund reserve; the Board of Education’s portion remains unresolved pending settlement of IBNR (incurred but not reported) claims that will determine the reserve balance.
The Chair said auditors requested a legal opinion about the Board of Education’s withholding of premium cost shares where employees were not paying premiums; outside counsel was retained and staff expect to receive that opinion by the end of the week. The Chair cautioned that while the city hopes to file the audit by Dec. 31, the legal opinion could drive a short extension into January if needed. The Chair said the city will report back to the Board of Finance and City Council once the reserve status is finalized.
Board members also signaled they will need detailed information from the Board of Education about changes to health insurance arrangements as the city moves into mill-rate discussions; one member said that the health insurance change represents a “huge change from how we’ve approached that in the past” and requested detailed data to set the mill rate properly.
Next steps recorded in the meeting included staff follow-up to resolve IBNR claims, provide the auditor’s legal opinion, and supply final 2024 Board of Education financials for the board’s review prior to budget deliberations.
