The most recent actuarial study of OP&F’s retiree health care reserves shows that the solvency period of the fund improved by six years compared to the previous year.
As of Jan. 1, 2020, funding for the current OP&F retiree health care plan would last until 2038. The Jan. 1, 2019 study showed solvency until 2032. OP&F’s independent actuary, Cavanaugh Macdonald Consulting, presented the study at the September Board of Trustees meeting.
Since Jan. 1, 2019, OP&F has provided eligible retirees with stipend-based support to purchase health care. In prior years, OP&F sponsored a self-insured group plan for retirees. Expenses for the group plan became unsustainable and the solvency for retiree health care dipped to approximately seven years. The move to the stipend model significantly improved funding and allowed OP&F to continue to provide health care support to retired members.