|
METRO Board members received a summary of findings today regarding the Transport Workers Union-Metropolitan Transit Authority Health and Welfare Trust. The accounting firm BDO USA, LLP was asked by the Board to help determine whether the Trust is operating at a deficit and, if so, determine how that might have occurred. The review was also to determine if funds were misappropriated from the Trust.
The Trust, which is a separate entity from METRO, is
charged with collecting funds and providing payment for the health and welfare
benefits of union employees and retirees covered by insurance plans.
Today's
presentation revealed there was "no indication of misappropriation of
funds", however, a deficit of about $1.4 million existed as of
December 31, 2014 and it is growing. The insufficiency, according to BDO, is
due to a shortfall in
participant contributions,
and by METRO’s underfunding of the Trust by $460,000 to $530,000. The deficit is projected to
reach somewhere between $4.3 and $5.2 million by August 2015
The findings were presented today to the People Committee of the METRO Board
of Directors. The full Board will discuss the findings of the report and next steps at the regularly scheduled Board meeting on March 26,
2015. The Trust has also taken steps for early
open enrollment period for union employees to help reduce the deficit.
METRO President and CEO Tom Lambert noted employee health insurance coverage will not be jeopardized, "The
first priority is to make sure METRO employees have insurance coverage.”
The full BDO report can be found here.
|
