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Granby Pension Nears Full Funding; Retiree Health Fund Has $5M Gap

A new actuarial report shows both funds improved.

GRANBY, CT — Granby's pension fund is moving closer to full funding, but the town still has a $5.02 million gap in a separate trust used to cover retiree health and other benefits.

The figures come from actuarial valuations dated July 1, 2025, which were summarized in a recent report from town Finance Director Kimi Cheng.

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Granby's pension plan had an estimated $26.16 million in obligations and $24.36 million in assets, leaving an unfunded liability of $1.8 million. Its funded ratio climbed from 90 percent to 93.1 percent.

The town's required pension contribution for fiscal year 2026-27 fell from $701,208 to $676,882. Investment returns topped the plan's assumed 6.5 percent rate, helping narrow the funding gap.

The outlook is different for Granby's other post-employment benefits trust, commonly called OPEB. That fund covers retiree medical, dental and life insurance benefits rather than monthly pension payments.

The OPEB trust had an estimated $10.26 million in obligations and $5.24 million in assets. Its funded ratio rose sharply, from 37.2 percent to 51.1 percent, and its unfunded liability declined by nearly $1.6 million.

Despite that improvement, the town's required OPEB contribution increased slightly to $923,338 for the current fiscal year. The report attributed the increase to health care inflation and updated claims experience.

The funding gaps are long-term estimates, not bills due immediately. The town's report projects the pension shortfall could be eliminated by 2032 and the OPEB shortfall by 2037 if Granby continues making its recommended annual contributions and other assumptions hold.

The Granby Pension Committee reviewed the figures July 30 and approved sending the report to the Board of Selectmen.

For more Northern Connecticut news, follow Patch editor Jay Kenney.

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