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Sep 20, 2023 · Related development

Board votes to terminate the former hospital employees' pension plan and buy annuities

At a special meeting the board approved a pension risk transfer agreement with Gallagher (not to exceed $88,000), authorized the chairman to contribute up to an additional $3.4 million from the corpus, and adopted an amendment to terminate the Retirement Plan for Employees of Northwest Texas Healthcare System, a frozen plan the District kept after the 1996 sale. The actuary said about $2.9 million more would be needed to terminate the plan as of September 12, 2023.^[1]^[2]

Arthur J. Gallagher & Co. (Gallagher Benefit Services)

What the sources say

✓ Verified
The actuary reported the frozen pension plan at 96.1% funded as of October 1, 2020 (with the return assumption lowered to 6%), 107.6% as of October 1, 2021 and 88.1% as of October 1, 2022 on a market value basis. ^[3]^[4]^[1]
✓ Verified
The board approved the risk transfer agreement and authorized the chairman to enter into the risk transfer up to an additional $3.4 million contribution from the corpus; it then approved the amendment to terminate the plan. All three votes were unanimous. ^[2]
Max contribution
$3,400,000

Sources

1.Amarillo Hospital District Finance Committee minutes, August 28, 2023 — Amarillo Hospital District Finance Committee (via City of Amarillo CivicClerk), Aug 20, 2024 · retrieved Oct 22, 2026primarySubject-authoredPublished date is the approval date: approved at the Finance Committee meeting of August 20, 2024. Scanned minutes (OCR). Pension plan 88.1% funded at 10/1/2022; termination options; FY2023/24 budget. The minutes body says the committee met on August 24, 2023 (as printed); the header says August 28.
2.Amarillo Hospital District Board of Managers minutes, September 20, 2023 — Amarillo Hospital District Board of Managers (via City of Amarillo CivicClerk), Dec 5, 2023 · retrieved Oct 22, 2026primarySubject-authoredPublished date is the approval date: approved at the Board meeting of December 5, 2023. Scanned minutes (OCR). Special meeting: pension risk transfer agreement (not to exceed $88,000) and up to $3.4 million from corpus; amendment to terminate the plan.
3.Amarillo Hospital District Board of Managers minutes, August 10, 2021 — Amarillo Hospital District Board of Managers (via City of Amarillo CivicClerk), Oct 26, 2021 · retrieved Oct 22, 2026primarySubject-authoredPublished date is the approval date: approved at the Board meeting of October 26, 2021. Scanned minutes (OCR). LPPF rate amended from 2.45% to 6%; pension plan 96.1% funded at 10/1/2020; FY2021/22 budget.
4.Amarillo Hospital District Finance Committee minutes, August 18, 2022 — Amarillo Hospital District Finance Committee (via City of Amarillo CivicClerk), Dec 2, 2022 · retrieved Oct 22, 2026primarySubject-authoredPublished date is the approval date: approved at the Finance Committee meeting of December 2, 2022. Scanned minutes (OCR). Texas Tech pediatrics request ($550,000; $250,000 approved); pension plan 107.6% funded at 10/1/2021; FY2022/23 budget with about $12.9 million projected reserves in 2036.