The General Assembly established the Retiree Health Care Trust Fund with passage of the Health Insurance and Benefits Funding Act of 2008 in order to pre-fund non-pension retiree benefits. Prior to the Act of 2008, the State had funded retiree health care benefits on a pay-as-you-go basis.
The General Treasurer’s office has a seat on the OPEB board, which is responsible for the administration and operation of the OPEB system. Management and administrative responsibility for the investment program is delegated to the State Investment Commission, who will have final authority over any investment decisions.
The OPEB trust was first funded in April of 2011. Since its initial funding it has grown to over $135 million as of March 31, 2015. Unlike the pension system, the OPEB trust is cash flow positive and has also seen an investment return of over 10% since inception. The OPEB funds are currently invested in 65% equity and 35% fixed income.
More detailed performance data for the fund can be found in the monthly State Investment Commission reports.