Saving Your Members Money
The best thing a COG can do for its members is give them money! You can effectively do that by reducing your members’ OPEB contributions. Here’s how it works:
- Governments make yearly contributions to OPEB trusts based, in great part, on projected investment returns. These projected returns are determined by their actuaries.
- Investment returns are affected by investment costs. For every decrease of 1% in investment costs, governments could see their annual OPEB contributions reduced by 12-20%.
- By pooling their resources, a COG’s program can provide Phase 2 governments with access to institutional services and pricing. By lowering costs, we increase investment returns.
- Thanks to the additional investment income and what Invest by Design will supply your actuaries, they will be able use the higher projected returns to justify a a greater discount rate against future value to reach OPEB’s present value. As a result, the participating governments will lower their yearly OPEB contributions.
In other words, you can help solve OPEB!
