Bloomfield Township owes $83 million more in retiree health benefits than it has set aside to pay, according to a new actuarial report.
The Milliman valuation, issued Sept. 18, pegs the township's Other Post-Employment Benefits (OPEB) fund at 30.8% funded as of April 1. The plan's total accrued liability stands at $120 million against $37 million in assets.
The price tag to close that gap is climbing. The actuarially determined contribution for fiscal year 2027-28 is $11,040,113, up 26% from the $8,787,689 required for fiscal year 2025-26.
What's driving the increase
Two factors pushed the unfunded liability higher since the April 1, 2024, valuation, according to the report prepared by Jack Chmielewski, a principal and consulting actuary at Milliman.
Per capita healthcare costs rose faster than expected. Combined with the removal of age-based adjustments for dental benefits, that added roughly $9.6 million to the unfunded liability and about $1.2 million to the annual contribution. Updated medical and dental trend assumptions and new mortality tables added another $7 million to the liability and $913,000 to the contribution.
Who pays, and how much
Police retiree costs account for the largest share of the fiscal year 2027-28 contribution at $5.4 million. Fire follows at $3.9 million. General township operations owe $2.2 million. Credits from the cable studio, building inspection and water and sewer funds offset a combined $477,000.
The plan covers 79 active employees and 269 retirees receiving benefits, plus 158 spouses and dependents. Active membership has dropped steadily, from 166 in 2018 to 101 in 2024 to 79 as of April 1, 2026. The township closed both its OPEB and defined-benefit pension plans to new hires in 2005, according to a township summary presented at the Aug. 28, 2023, Board of Trustees meeting.
Long-term outlook
The funded ratio has improved from a low of 7.1% in 2018 to 30.8% in 2026. The plan's assets earned 14.95% in fiscal year 2025-26, a gain of about $2.8 million above the assumed 6% return rate.
Milliman projects the unfunded liability will be fully paid off by 2042, assuming the township contributes $1.25 million above benefit payments each year and investments hit the 6% target. The plan is expected to pay out $170 million in benefits over the next 20 years.
Pension plan in better shape
A companion Milliman pension valuation, also issued Sept. 18, shows the township's defined-benefit retirement plan at 88.1% funded on an actuarial value basis. That plan carries a $32.4 million unfunded liability against $272 million in total obligations. Its required contribution for fiscal year 2027-28 is $5.4 million. The pension liability is projected to be fully amortized by 2039.
Between the two plans, Bloomfield Township faces a combined required contribution of roughly $16.4 million for fiscal year 2027-28.
Bloomfield Township voters will also weigh a separate Township Facilities Bond Proposal on the Nov. 3 ballot, according to the Oakland County Elections Division.
