HomeMy WebLinkAboutResolution 4247-09-2013 A Resolution
NO. 4247-09-2013
ADOPTING REVISED FUNDING PLAN FOR RETIREE HEALTHCARE
BENEFITS FOR ELIGIBLE RETIREES AND DEPENDENTS
WHEREAS, on August 18, 2009, the Fort Worth City Council adopted Resolution
No. 3779-08-2009 (M&C C-23730), which adopted a trust as part of the City's plan of
benefits with the trust to serve as a funding source for retiree healthcare benefits
associated with employees hired before January 1, 2009, who are eligible to receive
some form of subsidy for retiree healthcare from the City;
WHEREAS, on September 21, 2010, the City Council adopted Resolution
No. 3921-09-2010, which approved a twenty (20) year funding plan for the purpose of
funding retiree healthcare benefits associated with eligible employees;
WHEREAS, Resolution No. 3921-09-2010 requires City staff to annually review the
funding plan with the City's financial advisors and health benefits consultant and to
update the funding plan no less than every two (2) years;
WHEREAS, as of January 1, 2013, the fair market value of assets in the trust was
estimated at $24,328,000.00;
WHEREAS, as of January 1, 2013, the City's unfunded actuarial accrued liability
for OPEB is estimated at $980,134,000.00;
WHEREAS, at the Fiscal Year(FY) 2014 Budget Work Session on August 16, 2013,
following consultation with the City's financial advisors and health benefits consultant,
City staff presented the City Council with an update on projected post-employment benefit
liability and recommended implementation of certain cost-reducing, benefit-delivery
changes; reduction of the targeted funding level for the trust; and revision of the funding
schedule beginning 2014 as follows:
FY2014 $13,795,537 FY2024 $9,000,000
FY2015 $13,795,537 FY2025 $8,000,000
FY2016 $13,795,537 FY2026 $7,000,000
FY2017 $13,795,537 FY2027 $7,000,000
FY2018 $13,795,537 FY2028 $6,000,000
FY2019 $13,795,537 FY2029 $6,000,000
FY2020 $13,795,537 FY2030 $6,000,000
FY2021 $12,000,000 FY2031 $6,000,000
FY2022 $11,000,000 FY2032 $6,000,000
FY2023 $10.000,000 FY2033 $6,000,000
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Resolution No.4247-09-2013
WHEREAS, it is anticipated that the revised plan as proposed will be as effective
in managing the City's unfunded liability as the previous funding plan;
WHEREAS, deviations from the proposed funding plan that defer contributions
may result in the City being required to make higher contributions in the future; and
WHEREAS, the City staff will review the funding plan with the City's financial
advisors and health benefits consultants annually and update the funding plan no less
than every two (2) years,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
I . That the revised funding plan as outlined above is hereby adopted, subject to
annual review; and
2. That the City Manager or any Assistant City Manager is hereby authorized to
act on behalf of the City to implement the revised funding plan as outlined
herein and to take whatever additional actions are required to do so.
ADOPTED this 24'11 day of September, 2013
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