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%.
MERS Employer: Pittsfield Charter Township
With long-term financial stability as the goal, Township officials worked with union leadership to negotiate modifications to pension and retiree health insurance benefit packages.
Provided a portable benefit that supports their goal of attracting and retaining talent, without the possibility of developing future OPEB liability.
MERS Employer: Gerald R. Ford International Airport Authority
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...
The City’s OPEB liability dropped from $10.5 million to just $4 million, a savings of $6.5million.
MERS Employer: City of Eaton Rapids
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).
OPEB liability dropped from more than $8 Million to $1.5 Million
MERS Employer: Jackson District Library
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...