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City of Dearborn Post Retirement Health Care Fund
The City of Dearborn Post Retirement Health Care Fund is a Michigan municipal trust established to finance health care benefits for eligible city retirees and...
City of Dearborn Post Retirement Health Care Fund
The City of Dearborn Post Retirement Health Care Fund is a Michigan municipal trust established to finance health care benefits for eligible city retirees and their dependents. The fund's governance rests with a Board of Trustees, currently chaired by Randa Dagher, with Alan Brzys serving as vice chairperson (per public record). Mayor Abdullah H. Hammoud and Finance Director Michael Kennedy are key administrative partners in the city's broader financial stewardship, though the trust's fiduciaries retain independent decision-making authority over investment policy. The fund's mandate is inherently liability-driven, matching assets to the long-term health care obligations of an aging municipal workforce. While the precise asset allocation is not public, similarly situated municipal health trusts typically deploy across fixed income, domestic and international equities, real assets, and private markets to balance return requirements with liquidity needs for ongoing benefit payments. The investment strategy is shaped by board-adopted policy and actuarial assessments, with the trust participating in MAPERS, the Michigan Association of Public Employee Retirement Systems, for trustee education and peer exchange on public fund management. Dearborn operates multiple public employee benefit vehicles, including separate pension systems governed under different chapters of the city code. This post-retirement health care trust is distinct from the city's Chapter 23 pension system, though it shares board overlap and administrative oversight. The fund's solvency directly affects the city's credit profile; rating agencies and municipal bond investors view post-employment benefit liabilities as a material component of Dearborn's overall fiscal health. Recent actuarial reports and city budget documents are the primary windows into the fund's funded status and contribution requirements. The trust's defining structural feature is its statutory isolation from the city's general fund. While administered with city cooperation, the assets are held in trust exclusively for retiree health care—a legal firewall that prevents benefit diversion for municipal operating needs. This architecture mirrors the Employee Retirement Income Security Act's (ERISA) trust requirement in private-sector plans, though municipal plans operate under state law rather than federal statute.
General information
Firm type
Pension Fund
Location
Region
North America
Country
United States
City
Dearborn
Corporate office
Dearborn, MI, United States
Principals
Randa Dagher
Chairperson of the Board of Trustees Retirement System (Chapter 23)
Alan Brzys
Vice Chairperson of the Board of Trustees Retirement System (Chapter 23)
Abdullah H. Hammoud
Mayor of the City of Dearborn
Michael Kennedy
Finance Director for the City of Dearborn
Sector focus
Frequently asked questions
Who runs investment decisions at the City of Dearborn Post Retirement Health Care Fund?
The fund is governed by a Board of Trustees, chaired by Randa Dagher with Alan Brzys as vice chairperson (per public record). The board sets investment policy and oversees asset allocation decisions, typically with the support of an investment consultant and external managers. Mayor Abdullah H. Hammoud and Finance Director Michael Kennedy are key administrative partners but do not serve as trustees of the health care trust.
Is this fund part of the City of Dearborn's pension system?
No. The Post Retirement Health Care Fund is a separate trust from the city's Chapter 23 pension system. While both serve city retirees, the pension system provides retirement income while this trust covers post-employment health care benefits. The two vehicles have distinct legal structures, funding mechanisms, and actuarial liabilities, though they share some board membership and administrative oversight.
How does this fund's structure differ from a private-sector health care trust?
The fund operates under Michigan municipal law rather than ERISA, giving it different governance, funding, and reporting requirements. It is a public entity subject to open meetings laws and public records requests, and its assets are held in trust exclusively for retiree health care—a legal firewall that prevents the city from diverting assets for other municipal purposes. Unlike many private-sector plans, public plans are not covered by Pension Benefit Guaranty Corporation insurance.
What is the fund's relationship with MAPERS?
The fund and its trustees are active members of MAPERS, the Michigan Association of Public Employee Retirement Systems (public record). MAPERS provides trustee education, legislative updates, and a peer network for Michigan public pension and health funds navigating state-specific regulatory and funding challenges.
How does Dearborn's annual budget process affect this fund?
The city's annual budget determines the employer contribution to the trust, which is a line item in Dearborn's financial statements. Actuarial valuations, typically conducted every two years, establish the required contribution to fund future obligations. Underfunding creates an unfunded liability that rating agencies monitor when assessing the city's creditworthiness, as post-employment benefits are a material long-term obligation alongside bonded debt.
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