City of Chattanooga OPEB Trust Fund

City of Chattanooga OPEB Trust Fund

The City of Chattanooga OPEB Trust Fund was established to prefund other post-employment benefits (OPEB) for city retirees, reducing the city's unfunded liability. The fund is governed by a Board of Trustees that includes Daisy Madison, the City Finance Officer, as Chair, and Katie Reinsmidt, a Senior Vice President at CBL & Associates Properties, as Vice Chair. The trust's capital originates from city appropriations and pension system contributions, though the exact founding year is not publicly disclosed. The trust pursues a diversified investment strategy across multiple asset classes, including infrastructure, real estate, private credit, and hedge funds. It does not publicly disclose individual portfolio holdings or co-investment partners. The fund's geographic focus centers on North America, with exposure to both public and private markets. Given its role as a municipal trust, the fund avoids speculative or illiquid strategies that could compromise its ability to meet benefit obligations. The trust maintains a close relationship with the City of Chattanooga General Pension Plan, sharing the same Board of Trustees. The fund's professional staff is lean, relying on external managers and advisors. No recent operational events—such as leadership changes or major allocation shifts—have been publicly reported in the last 24 months. A structural differentiator of the City of Chattanooga OPEB Trust Fund is its explicit mandate: prefunding retiree healthcare benefits, rather than maximizing absolute returns. This liability-driven investment approach shapes all portfolio decisions, prioritizing capital preservation and consistent income streams. The fund's governance model, overseen by city officials, also introduces a public accountability layer uncommon among private family offices.