FY 27 Proposed Operating Budget

HARFORD COUNTY OTHER POST EMPLOYMENT BENEFIT PLAN FISCAL YEAR 2027

Purpose

Other Post Employment Benefits Plan Trust Fund Statement of Estimated Net Position

Harford County Other Post Employment Benefits Plan (OPEB) Trust Fund was established effective July 1, 2007. In June 2004 the Government Accounting Standards Board (GASB) released Statement 45 which revised the GAAP accounting standards for post employment benefits other than pensions (OPEB). This standard would most typically be applied to post-retirement medical and life insurance benefit that are both provided to Harford County retirees. Prior to this new standard, these benefits were accounted for on a pay as you go basis. The new standard requires these benefits be accounted for on an accrual basis. An actuarial firm has been retained to provide services to the OPEB Trust Fund. The Trustees have formalized an investment policy and custody agreement for the investment of the Trust Fund assets.

Net Position Held In Trust for OPEB June 30, 2025

208,142,200

Estimated Revenues:

Investment Income OPEB Retiree Payment County Contributions

11,725,000 1,700,000 6,541,000

Total Estimated Revenues

19,966,000

Estimated Expenses: OPEB Benefits

(11,625,000)

Financial/Audit

(400,200)

Total Estimated Expenses

(12,025,200)

Estimated Net Position Held In Trust for OPEB June 30, 2026

216,083,000

Fiscal Year 2027

Estimated Revenues:

Investment Income OPEB Retiree Payment County Contributions

14,093,000 2,000,000 9,083,000

Total Estimated Revenues

25,176,000

Estimated Expenditures:

Life Insurance Payments Health Insurance Payments Management Services

(100,000)

(11,500,000)

(25,000) (425,000)

Financial/Audit

Unfunded Liability Contribution

(13,126,000)

Total Estimated Expenditures

(25,176,000)

Estimated Net Position Held In Trust for OPEB June 30, 2027

216,083,000

701