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Town of Arlington, Massachusetts
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Article 57 | | | |
| | | | | | | | Warrant Article Title:
APPROPRIATION/OTHER POST EMPLOYMENT BENEFITS(OPEB)TRUST FUND | | | |
| | | | | | | | Warrant Article Text:To see if the Town will vote to accept into the Other Post Employment Benefits (OPEB) Trust Fund, established by Chapter 161 of the Acts of 2005, an appropriation of funds and/or the transfer of additional monies that the Town may deem advisable from other sources in order to administer and fund its OPEB obligations and administrative costs as described in said Chapter 161 of the Acts of 2005; determine how the monies shall be raised and expended; or take any action related thereto. | | | |
| | | | | | | | Requested by:(Inserted at the request of the Finance Committee) | | | |
| | | | | | | | Report Excerpt:(13-0-2)
These recommendations continue the program to fund the Town’s unfunded liability for retiree health insurance. Traditionally, Town Meeting appropriates $300,000 from the Health Benefit Trust Fund. However, with that fund’s balance being $1,462,454 and with little likelihood of claims being made from it, the Finance Committee recommends that the bulk of the balance, $1,412,454 be transferred, leaving $50,000 to cover any potential residual claims. The Town’s total unfunded OPEB liability as of June 30, 2022 was $191,302,402. The total amount in the trust fund as of December 31, 2022 was $20,104,106.22. The yearly management expenses are approximately $43,000. | | | |
| | | | | | | | Vote Language:That the Town takes the following actions:
a. appropriates into said Other Post-Employment Benefits Fund (OPEB), authorized by Chapter 161 of the Acts of 2005, for investment and expenses the sum of $500,000 representing that amount of money that was previously appropriated for the Non-Contributory Pension when this funding program started; said sum to be raised by the general tax.
b. appropriates into said fund the sum of $155,000 representing the increased share of retiree HMO contributions as voted by the Select Board on November 6, 2006; said sum to be raised by the general tax.
c. appropriates into said fund the sum of $1,412,454 to be transferred from the remaining balance in the health benefit trust fund. | | | |
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