HomeMy WebLinkAboutResolution 4464-06-2015 A Resolution
NO. 4464-06-2015
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; and
WHEREAS, in 2010 and 2013, the City Council adopted resolutions revising the
funding plan (Resolution Nos. 3921-09-2010 and 4247-09-2013); and
WHEREAS, since adoption of the last resolution, the City has made substantial
progress in containing and reducing healthcare costs and the City's unfunded actuarial
accrued liability (UAAL) for other post-employment benefits (OPEB); and
WHEREAS, as of January 1, 2015, the City's UAAL is $774,736,000.00 which
represents a decrease of $163,091,000.00, or almost 20%, from the UAAL at the time
Resolution 4247-09-2013 was adopted; and
WHEREAS, City Council and staff are committed to continuing efforts to contain
and reduce healthcare costs and OPEB liabilities; and
WHEREAS, the City's Group Health and Life Insurance Fund, which consists of
City and plan-participant contributions that may only be expended for healthcare
purposes, periodically has net position (fund balance) that exceeds the Fund's designated
reserve requirements; and
WHEREAS, in light of past and anticipated future success in containing and reducing healthcare
costs and OPEB UAAL, investment-based growth in the OPEB Trust, and other pressing needs for the
City's limited resources, the City Council wishes to revise the funding plan to discontinue further
transfers into the trust from the City's operating budgets and instead designate surplus net position(fund
balance) in the Group Health and Life Insurance Fund be periodically transferred to the OPEB Trust
with City Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. That the funding plan for the OPEB Trust, as most recently modified by
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Resolution 4247-09-2013, is hereby suspended, with no further transfers to be
made to the Trust from the City's operating budgets;
2. That net position (fund balance) in the Group Health and Life Insurance Fund
that exceeds the Fund's designated reserve requirement should periodically be
transferred to the OPEB Trust, which is a use consistent with the authorized
purposes of the Fund, with City Council approval;
3. That in connection with the City's annual budget process, staff is directed to
present options for funding the annual pay-as-you-go expense for retiree health
benefits from current revenues, Trust assets and proceeds, and other available
resources; and
4. That the City Manager or his designee is charged with continuing to monitor
the City's unfunded actuarial accrued liability for other post-employment
benefits and to advise City Council of the status of such liability on a periodic
basis of no less than once per year.
ADOPTED this 2nd day of June 2015. �b� �"�u ��
ATTEST:
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Mary Kays 4_,-Pty Sec etary t� °®oao®®oo°� j(,d
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