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Commissioners review resolution to terminate county-held hospital pension trust, consider annuity transfer
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Summary
Staff discussed a resolution authorizing termination of the county-held pension plan remaining from the 2021 hospital sale; Eric said assets have recovered and staff is exploring transferring obligations to an annuity company to reduce contingent liability.
Commissioners considered a resolution authorizing termination of the New Hanover Regional Medical Center pension plan the county retained after the hospital’s 2021 sale. Eric explained the county currently administers a trust that funds pension payments once employees become eligible; market losses in 2022 reduced the trust’s assets relative to its liabilities, creating contingent liability risk for the county.
Eric told the board that when the hospital assets were transferred in 2021 the trust was believed fully funded following an $88,000,000 contribution from Novant, but market declines in 2022 reduced the trust’s value. Staff reported that asset values have recovered over the past 16–18 months and that terminating or transferring the obligation to an annuity company would remove the county’s administrative role while preserving benefit payments for plan participants. "Pension obligations will be met," Eric said, "It would just be met by an annuity company and not that escrow."
Commissioners asked for clarifying language in the resolution about what "officers" means in the document and Eric said the resolution designates specific county officers (the county manager and CFO) to carry out implementation. No formal adoption vote is recorded in the provided transcript; commissioners asked staff to add explanatory language to avoid public confusion before a Monday agenda posting.
