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Committee questions 8% health-care growth assumption and asks for review of 115 trust guidelines
Summary
Staff modeled 8% annual health-care cost growth over the 10-year horizon but acknowledged market examples of far higher increases; committee members asked staff to review the town's 115 trust investment guidelines and invite advisors for an update.
Committee members pressed staff on the health-care cost assumption in the 10-year model. Chris said, "This model predicts an 8% year over year with health care increases," and acknowledged he had set that 8% assumption for the whole horizon but that some employers are seeing much higher increases and cohort effects can raise costs unpredictably.
Separately, a committee member asked staff to review the town’s '115 trust' investment policy to consider dialing up or down risk. Members agreed it would be useful to invite the town’s advisors to present current allocations and holdings; Chris agreed to arrange a briefing and share perspectives and materials with the committee.
