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HomeMy WebLinkAboutPolicy 35 - Medical Reserve Fund for District RetireesOTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised MEDICAL RESERVE FUND FOR DISTRICT RETIREES 35 06/07/00 07/06/16 Page 1 of 1 PURPOSE This policy is intended to provide a guideline for the prudent management of the District’s medical reserve fund for retired employees and Board Members. The goal of this policy is to establish the District’s reserve policy for the funding of the OPEB Reserve and related CALPERS Trust, which is performed in a manner intended to reduce the impact of medical expense on the annual operating budget. OBJECTIVE The fundamental financial objective of the medical reserve fund is to establish and receive contributions from the general fund operating reserves, which will remain approximately at the level necessary to meet the annual obligation of the District’s existing benefit package. The medical reserve fund is designed to accurately monitor and forecast expenditures and revenues to the fullest extent possible. The District will endeavor to make medical and dental coverage available for retired individuals and their dependents as described in the Memorandum of Understanding between the District and the Employees’ Association. Retired employees will be eligible for continuation of coverage if they satisfy both the age and years of service requirements at the point full-time employment ceases. DELEGATION OF AUTHORITY Under authority granted by the Board of Directors, the General Manager will administer the fund. REPORTING Every two years, the District will have an actuarial evaluation completed to determine the financial liability of the fund. A qualified actuary, in accordance with the principles and procedures established by the Actuarial Standards Board (ASB), should perform the actuarial valuation. The Chief Financial Officer will report the results of the actuarial evaluation to the Board of Directors. This report should include the fund assets, projected funding and liability based on the most recent employee information.