Recent Board Action Regarding OPEB
Retirement Board
• At its March 29th meeting the Board of Trustees approved a resolution establishing the Retirement Board to
handle all financial aspects of Other Post-Employment Benefits. The Retirement Board's 1st meeting will
be held on April 13, 2011.
Approved the restructuring of the debt service through Fiscal Year 2016
• At its March 29th meeting the Board of Trustees approved recommendation to restructure debt service
obligation of General Fund. See Exhibit A.
Approved the termination of the first SWAP traunch
• At its March 29th meeting the Board of Trustees approved recommendation to terminate the 1st SWAP
traunch (B-1).
Approved District (not Retirement Board) Investment Policy and Administrative
Procedure
• At its March 29th meeting the Board of Trustees approved an Investment Policy for District Funds (excluding
OPEB) and Administrative Policy.
Received and Approved New Actuarial Study
• At its March 29th meeting the Board of Trustees received and approved a new Actuarial Study in
accordance with GASB 45.
Exhibit A
Estimated Par
Final Maturity
TIC
Estimated Debt Service in FY 2012
Estimated Debt Service in FY 2013
Estimated Debt Service in FY 2014
Estimated Debt Service in FY 2015
Estimated Debt Service in FY 2016
Estimated Debt Service in FY 2017
% DS Increases after FY 2017
Additional FV Debt Service
Additional PV Debt Service
Current Est.
Debt Service
N/A
N/A
N/A
8,104,282.78
9,159,220.60
10,366,629.27
11,745,840.47
19,823,770.80
9,247,141.55
~2.5%
N/A
N/A
Scenario 2A – 20 year
$40.5 million
11/1/2031 (FY 2032)
7.60%
5,286,676.78
6,528,954.10
6,988,687.77
7,704,913.97
8,909,086.80
12,478,398.05
3%
$50.8 million
$9.3 million
Peralta CCD Board of Trustees
•Appoints members of Retirement Board
•Reviews and approves all contracts and
recommendations from Retirement Board
Retirement Board
•Sets Retirement Board Investment Policy
•Evaluates/Recommends to BOT
Underwriter, Counsel, Investment Manager,
and Financial Advisor
•Reports to BOT no less than quarterly
•Responsible for obtaining Actuarial Study no
less than once every two years
KNN - Investment
Advisor
Underwriter
•Provides market advise and
counsel
•Facilitates the
issuance/restructure of debt
and SWAP agreements
Legal Counsel
•Provides legal advise and
counsel
Neuberger Berman - Investment
Manager
•Provides investment advise and
counsel
•Invests plan assets in accordance
with Retirement Board Investment
Policy
•Provides general advise
and counsel on entire
OPEB program
Program Structure
Liabilities
Assets
Debt service on
OPEB bonds
SWAP agreements
Actuarial study
Expenses
Investments held in
trust
Unrestricted
General Fund Annual expense
paid for retiree
medical benefits
OPEB reserve held
in county treasury
Unrestricted
General Fund - Debt
Service on OPEB
Bonds
Trust - Operational
expenses of trust
SWAP payments
Cash Flow
Unrestricted
General Fund
OPEB Trust
Reimbursement
OPEB Charge
Medical Costs for
Retirees
Principal and Interest
Payments
Bond Holders
Insurance
Providers