The Santa Clara Valley Transportation Authority's (VTA) board late last week approved the transfer of $20.65 million to reduce future liability for retiree health-care benefits.
The funding was set aside in the last budget cycle to be drawn upon while VTA explored options to reduce the long-term costs of retiree health care benefits, agency officials said in a press release.
The fund transfer will reduce future liability and VTA's annual contribution to retiree medical trust by about $2 million per year. After the transfer, the VTA will have a 72.8 percent funded ratio, considered among the highest of similar benefit trust funds for other transit agencies in California, agency officials said.
Browse articles on Santa Clara Valley Transportation Authority on Progressive Railroading