Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
Funding Policy
Contribution requirements are established, and may be amended, by the District. The required contribution is based on a pay-as-you-go financing requirement. The current health insurance contribution rates of Plan members are 50%. Current health insurance contribution rates for active employees are 25% to 50% depending on the plan selected. The Plan members and District each contribute 50% towards a $5,000 term life insurance policy. The Commonwealth of Massachusetts passed special legislation that has allowed the District to establish a postemployment benefit trust fund and to enable the District to begin pre-funding its OPEB liabilities. The Trust is managed by a 5-member Board of Trustees who are authorized to manage the Trust in accordance with the Trust Agreement. During 2024, the District pre-funded future OPEB liabilities by contributing $225,000 to the Other Postemployment Benefit Fund in excess of the pay-as-you-go required contribution. As more fully described in Note 10, the District paid $2,053,241 from the trust in 2024, in excess of its contributions for benefit payments, to fund an unexpected increase in health care claims paid by the Acton Health Insurance Trust. The OPEB trust fund is reported within the Fiduciary Funds financial statements. As of June 30, 2024, the balance of this fund totaled $8,832,950. The annual money-weighted rate of return on OPEB plan investments was 9.89%. The money-weighted rate of return expresses investment performance, net of OPEB plan investment expense, adjusted for the changing amounts actually invested.
Plan Membership – The following table represents the Plan’s membership at July 1, 2023:
Active members……………………………………… Inactive members currently receiving benefits………
891 503
Total…………………………………………………
1,394
The components of the District’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation are summarized in the following table:
Total OPEB liability…………………………$ 58,137,769 Less: OPEB plan's fiduciary net position…… (8,832,950)
Net OPEB liability……………………………$ 49,304,819
The OPEB plan's fiduciary net position as a percentage of the total OPEB liability… 15.19%
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