Update on Boston’s Pensions and Other Post-Employment Benefits (OPEB)

As Boston approaches full funding of the pension system, its spending on pensions will decline once it reaches full funding in FY28.This presents the opportunity to increase spending to address the unfunded OPEB liability.  Right now, the OPEB Trust’s unfunded liability is over four times larger than unfunded pension liability.

This Research Update examines the latest actuarial valuations, progress in funding these obligations, and changes to the pension contribution schedule. As pension payments decline through FY31, the Bureau encourages Boston to consider how it will fully fund its OPEB liability.

To learn more about Boston’s pension and OPEB obligations, read the full report here: