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.


Green Sheet – Proposed FY18 CEB Overview

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

Green Sheet Video Thumbnail


More Posts...
FY 2016

Goal completed

Prior Activity

May 2015

  • 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.

March 2015

  • 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%).

November 2014

  • 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)”