TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 19, 2012
COMMITTEE ON FINANCE
Mr. David St. Pierre, Executive Director
Title
Authority to Transfer $12,400,000.00 from the Corporate Fund to the Metropolitan Water Reclamation District Retiree Health Care Trust (101-25000-601250)
Body
Dear Sir:
The Retiree Health Care Trust Agreement provides the vehicle for advance funding of the District’s retiree health care liability. The 2012 District Budget provides for an additional $12,400,000 of such funding to be made from the Corporate Fund. The OPEB Advance Funding Policy of the District defines that beginning in year six of the funding policy, annual funding will be based upon a percentage of payroll each year as calculated by the Plan’s actuary. The 2012 funding requirement was estimated by the Plan’s actuary to be 18.7% of payroll, or $12,400,000.00, which was approved as part of the 2012 budget process.
Accordingly, it is requested that authority be granted by the Board of Commissioners to transfer $12,400,000 from the Corporate Fund to the Metropolitan Water Reclamation District Retiree Health Care Trust.
Requested, Mary Ann Boyle, Treasurer, MAB:wns
Respectfully Submitted, Cynthia M. Santos, Chairman Committee on Finance
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for January 19, 2012