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.