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City of Ann Arbor Retiree Health Care Benefits Plan
The City of Ann Arbor Retiree Health Care Benefits Plan funds medical and prescription obligations for retired municipal employees. Administered alongside the...
City of Ann Arbor Retiree Health Care Benefits Plan
The City of Ann Arbor Retiree Health Care Benefits Plan funds medical and prescription obligations for retired municipal employees. Administered alongside the larger City of Ann Arbor Employees' Retirement System, the plan shares the same Board of Trustees — chaired by Jeremy Flack — and operates under the oversight of Executive Director Wendy Orcutt. It is a single-employer defined-benefit health trust, not a pension, yet invests to meet actuarial health cost liabilities. Despite its modest size among US public asset owners, the plan runs a notably diversified portfolio. Core allocations span investment-grade bonds, high-yield debt, and Treasury Inflation-Protected Securities (TIPS) to match near-term health payout curves. A separate return-seeking sleeve pushes into venture capital globally, alongside direct real estate holdings within the United States and stakes in natural resources and infrastructure. This multi-asset construction mirrors the endowment-style approach of its sister pension plan. The plan has not publicly disclosed assets under management or headcount. Its investment committee operates within the same administrative apparatus as the employees' retirement system, which has historically engaged external consultants for asset allocation reviews. No recent venture capital commitments or real estate transactions are identifiable in the public record. What distinguishes this trust is its hybrid mandate: it is a health-benefit vehicle investing with the toolbox of a pension fund. Where many OPEB trusts stay in municipal bonds, Ann Arbor's plan reaches into alternatives — including venture — to extend its coverage horizon. The Board's shared governance across the health plan and the pension system creates a single fiduciary spine that few municipal OPEB trusts replicate.
General information
Firm type
Pension Fund
Year founded
1990
Location
Region
North America
Country
United States
City
Ann Arbor
Corporate office
Ann Arbor, MI, United States
Principals
Jeremy Flack
Chairperson of the Board of Trustees
Wendy Orcutt
Executive Director of the Retirement System
Sector focus
Frequently asked questions
Is this a pension fund or a health-benefit trust?
It is a defined-benefit health care trust (an OPEB plan), not a pension. The trust pays medical and prescription benefits to retired Ann Arbor municipal workers. Its investment strategy is designed to meet actuarially projected health liabilities, not pension checks.
Who oversees the plan's investment decisions?
The same Board of Trustees that governs the City of Ann Arbor Employees' Retirement System also oversees the retiree health plan. Chairperson Jeremy Flack leads the Board, and Wendy Orcutt serves as Executive Director of the Retirement System, per public administrative records. Investment recommendations are typically supported by external consultants.
What asset classes does the trust invest in?
The portfolio spans investment-grade bonds, high-yield bonds, TIPS, global venture capital, US real estate, natural resources, and global infrastructure. This mix blends liability-matched fixed income with return-seeking alternatives — a structure more commonly associated with endowments than municipal OPEB trusts.
Does the plan make direct investments or use external managers?
Based on the asset mix, the trust likely commits to commingled real asset and venture capital funds rather than direct co-investments. The fixed-income sleeves are almost certainly managed externally. No direct-deal counterparty names appear in the public record.
How does this trust differ from the City's main pension fund?
The pension fund covers retirement income; this trust covers post-employment medical costs. Structurally, however, they share the same Board, executive director, and administrative staff — meaning the same fiduciary body applies its investment approach to two different liability streams. The health trust's shorter-duration liabilities make its alternatives exposure particularly unusual.
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