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Other Post Employment Benefit (OPEB) facts - [Lifetime healthcare benefit]
According to the official documents produced by Jefferson Solutions reported dated July 1,2010 for the financial ststements June 30, 2011.
The Present Value of Future Benefit Payments:
City: $313,421,358
Schools: $60,020
Total: $373,441,436
The Unfunded Actuarial Accrued Liability is:
City: $240,497,738
Schools: $42,722,906
Total: $283,220,644
Annual required Contribution:
City: $21,325,553
School: 3,930,043
Total: $25,255,596
Why is city liabilities so much larger tha schools?
Benefit payment period: City, lifetime. Schools age 65
Covered Spouses and dependents: City Yes, Schools No
Participant Contribution (co-pay): City None, Schools 20% to 60%
Years of service required: City 10 to 20 years, Schools 20 to 30 years
Earliest Retirement age: City, uniform emplyees can retire once they have 20 years of service, Others at age 55 Schools: proferssional employees need 20 to 30 years of service. All other employees need to be age 62 resulting in a maximum benefit payment of only 3 years.
What would the liability be if the city adopted the current school requirements? We don't know because the Mayor refuses to pay to find out.
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