2021 Plan of Finance Amortization slide image

2021 Plan of Finance Amortization

OPEB The State Continues to Build a Substantial Balance in its OPEB Trust Fund OF STATE O 1959 HAWAI ◉ Act 268, Session Laws of Hawaii 2013 requires the State to pre-fund its OPEB costs and pay down the unfunded actuarial accrued liability over a 30-year period Under the Act, increasing OPEB prefunding contributions were phased in through FY 2018 with 100% of the ARC payment made beginning with FY 2019 The State made its full ARC payment for FY 2021 and an additional prefunding contribution of $390 million, making the total prefunding contribution for FY 2021 $827 million State OPEB prefunding contributions and investment returns resulted in a State OPEB Trust Fund balance estimated to be $3.7 billion at the end of FY 2021, up from $2.4 billion at the end of FY 2020 The State's FY 2021 OPEB contributions and investment returns are expected to increase the funded ratio above the FY 2020 funded ratio of 21% EUTF Prefunding Contributions (State Only) Millions EUTF Balance and Funded Ratio (State Only) $900 $827 $4,000 $800 Prefunding Requirements $3,500 $700 ■Total Prefunding Contributions $3,000 $600 $2,500 $500 $430 $430 $433 $433 $437 $2,000 $3,733 $400 $333 $337 $297 $1,500 $300 $250 $230 $2,371 $1,000 $200 $164 $1,829 $117 $1,295 $83 $500 $100 $880 $481 $221 $0 $0 2015 2016 2017 2018 Fiscal Year 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021(1) Fiscal Year 16 (1) Source: Hawaii Employer-Union Health Benefits Trust Fund. Estimated. Includes a $390 million prefunding contribution accrued as of June 30, 2021 and paid in July 2021.
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