Calhoun County was looking for a way to reduce its costs and OPEP liabilities while continuing to offer quality and affordable insurance benefits to post-65 retirees who were eligible for Medicare.
Calhoun County
Calhoun County was looking for a way to reduce its costs and OPEP liabilities while continuing to offer quality and affordable insurance benefits to post-65 retirees who were eligible for Medicare.
Over a seven-year period, the Township’s OPEB liability was reduced by more than $5 million—an almost 80% reduction. As a percentage of payroll, the accrued liability shrank from 10.5% to just 4%.
Prior to July 1, 2016, the airport was a department of Kent County. As part of a cooperative agreement with the county, GFIAA retirees were provided with a monthly stipend that could be used to purchase health insurance through the county’s plan. Unfortunately, the closed…
In 2018, the City of Eaton Rapids’ liability for other post-employment benefits (OPEB) totaled more than $10.5 million. Because they had not prefunded the obligation, the City was determined to be in underfunded status under the Protecting Local Government Retirement Benefits Act (PA 202 of 2017), and was required to file a corrective action plan (CAP).
The Jackson District Library is a small municipality that had a big problem with liability for other post-employment benefits (OPEB). Even after closing their retiree health care benefit to new hires in 2007, unfunded accrued liability for eligible active employees and existing retirees was growing. The Library decided to take steps to address their OPEB liability, and in 2008 began…