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District consultant: $33 million OPEB liability and trust could ease rising retiree health costs
Summary
An actuarial consultant told the finance subcommittee the district's total OPEB liability is about $33.1 million (measurement date 6/30/2024) and recommended considering an irrevocable OPEB trust and plan-design changes to slow future cost growth.
A consultant advising the district said its liability for other post-employment benefits, or OPEB, totaled about $33.1 million as of the June 30, 2024, valuation and that most of that cost is tied to pre-65 retiree medical subsidies.
Emily Erickson, a consulting actuary with Via Actuarial Solutions, told the Board Finance Subcommittee on Feb. 2 that projected premium subsidies for retirees start near $1.3 million for the current fiscal year and could rise toward $4 million over the next 30 years if current benefit rules and health-cost trends hold. "These costs are tied to health care premiums, which have been increasing," Erickson said.
The valuation separates an "explicit subsidy"—the portion of retiree premiums the district actually pays—from an "implicit subsidy" that GASB accounting…
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