MOTION FOR MEETING OF OCTOBER 2, 2014
Title
MOTION to amend OPEB Advance Funding Policy
Body
I hereby move that the Metropolitan Water Reclamation District of Greater Chicago (District) amend the Other Postemployment Benefits (OPEB) Liability Advance Funding Policy (Policy) and adopt the amended Policy attached hereto and incorporated herein by reference. The Policy will be amended to reflect a 100% funding goal to be achieved within 12 years or by 2026. The Policy amendment will be effective as of the date of passage of this Motion.
Background: On July 13, 2006, the District's Board adopted the Policy, wherein it established partial funding to advance fund retiree health care costs. The District's Other Postemployment Benefits include retiree health care and benefits for qualifying employees and their eligible spouses and dependents. These benefits include medical and prescription drug coverage only. No dental, life or disability benefits are paid by the plan. Under the Policy, the District set a target funding level of 50% over 50 years in establishing a reserve that will help ensure the financial ability to provide health care coverage for District retirees and their beneficiaries in the future. Under the amendment to the Policy, the District will set a 100% funding goal to be achieved within 12 years or by 2026, with no further advance funding contributions required after that date. Amending the Policy to increase the OPEB liability funding percentage helps to solidify the District's strategic goal of having a solid financial foundation and makes the retiree healthcare plan sustainable for the long-term.
Dated: October 2, 2014
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Commissioner