Moraga-Orinda Fire District OKs PARS health care trustCategories: California Developments,OPEB/GASB 45/75,PARS In the News
Contra Costa Times by Jennifer Modenessi, March 26, 2015
Moraga-Orinda Fire District officials have agreed to set up a trust and begin funding $16.9 million in future retiree health care benefits.
Governing board members Steve Anderson, Brad Barber, Kathy Famulener and Fred Weil voted March 18 to establish the trust with Public Agency Retirement Services, or PARS, a private trust administration program. High Mark Capital Management will manage the investments.
The district plans to deposit $84,000 into the US Bank trust, invest the funds and use the earnings to pay for $16.9 million in “other postemployment benefits,” or OPEB, the district has promised its employees. Board president Alex Evans was absent.
Directors say funding the debt now makes sense.
“We’re beginning to exercise the fiscal discipline necessary to really begin to pay down any OPEB unfunded liabilities,” Anderson said. “It’s just prudent to do this.”