Cohasset Bolsters OPEB Trust Fund Following Major Pension Cost Savings
Key Points
- Allocates funds to retiree benefit liabilities, bringing the OPEB trust fund near $10 million.
- OPEB Committee reported saving the town $300,000 annually by fighting a county pension hike.
- The town's pension system is projected to be fully funded by 2035.
Town Meeting approved Article 3, which authorized a significant deposit into the town's Other Post-Employment Benefits (OPEB) Trust Fund. Town Manager Chris Senior noted that the trust fund currently holds approximately $9.2 million, and this latest deposit moves the town closer to its $10 million milestone. The move follows the town’s established financial policies regarding long-term liabilities for retiree healthcare and pensions.
During the discussion, Timothy C. Davis of the OPEB Committee and resident Katie Dugan highlighted a major fiscal victory for the town. By collaborating with other communities to advocate against a proposed Norfolk County pension increase, Cohasset averted a $300,000 annual expense, reducing a projected $381,000 hike to just $82,000. Dugan explained that the town remains on track for the pension system to be fully funded by approximately 2035, which will eventually free up $1.5 million to $2 million in the annual operating budget.
Motion: Move that the Town vote to appropriate a sum of money for the OPEB Trust Fund in the form distributed.
Vote: Passed Unanimously