PENSION/OTHER POST-EMPLOYMENT BENEFITS (OPEB)

Goal: Determine a reasonable and responsible strategy to fund the Authority’s unfunded liabilities without placing an undue burden on ratepayers.


Green Sheet – Proposed FY18 Comments and Recommendations

The June 2017 installment of the Green Sheet gives a brief overview of the Advisory Board’s Integrated Comments and Recommendations. Highlights include:

  • How we get to the lowest rate increase in five years
  • How we reevaluate risk to protect ratepayers in future years
  • Our approach on Deer Island’s NPDES permit and how it could save ratepayers millions of dollars

 

You can view, print, or download our entire Integrated Comments and Recommendations here.


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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)”