Exelon Corporation OPEB

Jessica Hart, Senior Vice President and Chief Investment Officer of Exelon, oversees the investment management of both the OPEB trust and the Exelon Corporation Pension Master Trust. Hart leads an internal investment team based in Chicago that sets asset allocation policy, selects external managers, and monitors the trusts' funded status relative to actuarial liabilities. The team reports to Exelon's Chief Financial Officer and ultimately to the board's investment committee.

The OPEB trust funds retiree health and life insurance benefits — obligations that lack the strict ERISA minimum funding requirements and PBGC insurance backstop that apply to the pension plan. This gives Exelon more flexibility in contribution timing but means GASB rules require the unfunded liability to appear on the corporate balance sheet. The pension plan, by contrast, is subject to mandatory quarterly contributions based on funded-status thresholds, and the Pension Master Trust holds roughly $20 billion against those obligations.

The trust pursues a liability-driven investment strategy designed to defease the postretirement benefit obligation over time. The core fixed-income allocation matches the duration of expected benefit payments to the closed group of legacy participants, while equity and real-asset sleeves target returns that offset healthcare inflation. The objective is balance-sheet certainty, not absolute return maximization.

When Exelon separated its competitive generation business into Constellation Energy in February 2022, the legacy workforce and associated benefit obligations were split between the two companies. A portion of the OPEB liability — along with corresponding trust assets — transferred to Constellation, reducing the participant pool and the asset base of the Exelon OPEB trust. Both entities now independently manage their respective retiree health liabilities.

No. The Exelon Foundation is a separate corporate philanthropic entity funded by Exelon Corporation contributions, not by trust assets. It operates independently from the OPEB and pension trusts, focusing on education, environmental stewardship, and community development in the utility's service territories. The foundation has no claim on investment returns generated by the retiree benefit trusts.

Exelon's 2023 annual report showed the accumulated postretirement benefit obligation at roughly $3.5 billion, with trust assets covering an estimated 55–60% of the liability based on publicly reported plan-level disclosures. This reflects substantial improvement from prior years, driven by plan design changes, disciplined annual contributions, and favorable equity and credit markets. The remaining unfunded obligation continues to amortize through corporate earnings.

Like most captive utility OPEB trusts, this vehicle does not pursue direct private company investments or GP co-investments. The portfolio is implemented almost entirely through commingled institutional funds and separate accounts managed by third-party asset managers. The investment office's role focuses on manager selection, asset allocation, and liability analytics rather than sourcing proprietary deal flow.