OPEB Trust and Pension Trust
Investment Returns for 2002
Q3
Finance Committee
November 1, 2022
Q3 Conditions and Impacts
• Volatility due to:
• High inflation – Federal Reserve continues to raise interest rates • Crisis in Ukraine
• Supply chain challenges
• Long term investment timeline, patience, and risk tolerance Q3 Investment Report
OPEB Trust
• Value decreased from $19.1 M to
$18.3 M
• 1 Year return: -15.07%
• Inception (7/1/09) to date return:
4.79%
• Plan funded status: 81%
Pension Trust
• Value decreased from $5.6 M to
$5.4 M
• 1 Year return: -15.87%
• Inception (9/1/21) to date return:
-17.17%
• Plan funded status: 4%
Moving Forward
• Fed will likely continue to increase interest rate through December • Continue patience
• Pension Trust is only 4% funded
• Current amortization of pension liability last for another 20 years • OPEB Trust is 81% funded (80% is the benchmark for healthy funding) and is on moderate conservative plan
• Current amortization of remaining OPEB liability is 13 years Questions