OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Goal: Determine the best method for establishing and funding an irrevocable trust for its OPEB liability without placing an undue burden on ratepayers.
This edition of the Green Sheet provides an overview of the MWRA’s proposed FY18 Current Expense Budget. Click the image below to learn:
• What the proposed MWRA wholesale rate increase is
• Current cost estimates for the cross-harbor cable project
• How much a new Deer Island NPDES permit might cost
- Successfully secured bond counsel ruling that OPEB contribution line item was not classified as an operating expense, removing the need to raise money for the operating reserve requirement.
- Long-Term Rates Management Committee recommends $10 million from released reserves to be deposited as initial funding for OPEB Trust.
- MWRA reports anticipated “virtual full funding of pension (95%).
- AB Executive Director discussed convening staff-to-staff meeting with MWRA Executive Director.
Comments and Recommendations History
FY 2015 (Printed May 2014)
- Advisory Board recommended that 100% funding of the retirement fund be used as a specific “trigger” to begin the process of establishing an irrevocable trust for its OPEB liability. (page 55; #13)
- Advisory Board recommended that if the budgeted contribution to the retirement fund resulted in it being greater than 100% funded, excess funds would be placed in a dedicated reserve account until an irrevocable trust is established. (page 55; #14)
- Advisory Board recommended that a working committee, including representatives from the Advisory Board, be created to establish the schedule, structure and management of funding the Authority’s OPEB liability. (page 55; #15)
FY 2014 (Printed June 2013)
- Advisory Board recommended that the $4.98 million in the Proposed FY14 CEB for “Other Post Employment Benefits/Additional Pension Deposit” be added to the retirement fund as an optional payment. (page 47; #4)”