When systems are performing as intended, change is rarely top of mind. But at certain moments, change becomes essential to sustain success. In some cases, carefully managed short-term change can help ensure long-term stability.

That was the reality facing the Metropolitan Utilities District (the District) of Omaha, Nebraska, when its long-standing investment solutions provider for its employee pension and Other Post-Employment Benefit (OPEB) plans could no longer continue service.

Serving more than 200,000 customers across the Omaha metropolitan area with water and natural gas services, the District is equally committed to serving its workforce. Its defined benefit pension and OPEB plans are viewed as strategic assets to attracting and retaining skilled employees in a competitive market.

“We have a commitment to a secure retirement outlook for 900 employees,” said Steve Dickas, Chief Financial Officer for the District. “We take the responsibility very seriously to make sure our plan is well-funded.”

The Need:

Because the District was satisfied with the performance, structure and risk profile of its existing retirement program, leadership was not seeking drastic change. Instead, the priority was continuity—finding a provider capable of stepping in seamlessly, maintaining the integrity of the investment approach and minimizing disruption.

Dickas emphasized that the District sought more than cost competitiveness. Clear, concise reporting was essential, as was the ability to design a solution tailored to the District’s specific needs rather than relying on an “off-the-shelf” approach. Geographic proximity also mattered, enabling regular, in-person discussions and deeper collaboration.

"The District was not seeking a fundamental shift in its investment risk profile,” said Kim Matthews, managing director of PNC Institutional Asset Management’s Pension and Enterprise Solutions. “However, there were meaningful growth objectives where we believed we could add value. One of the most significant was establishing a clear and sustainable pathway for funding benefit payments from the OPEB trust.”

The Solution:

PNC emerged from a competitive field of more than ten respondents to the District’s request for proposal process. The solution: a comprehensive investment strategy and pension management framework delivered through PNC’s Outsourced Chief Investment Officer (OCIO) offering.

Under this model, PNC assumed responsibility for overseeing the investment strategy, custodian/trustee and pension management services while helping the District meet the long-term liabilities of both its defined benefit and OPEB plans.

Given the District’s view of pension benefits as a cornerstone of employee retention, Dickas noted that experience serving public-sector or public utility clients was a critical differentiator. Equally important was a working relationship with an emphasis on relatability and availability, without any added pressure for the District to adopt a more aggressive investment posture than it historically had maintained. PNC’s disciplined, thoughtful approach aligned well with that philosophy.

We value employee retention and commitment to our retirees and view the benefits that come out of this plan as our promise to them. We were happy to stay conservative, and PNC was a good match for that.

— Steve Dickas, Chief Financial Officer, Metropolitan Utilities District of Omaha, Nebraska

The Results:

PNC officially transitioned into management of the District’s retirement plans in 2024. The District’s existing investments were transferred in-kind to PNC, allowing them to remain invested and contributing to the overall continued growth in the value of the defined benefit plan under PNC’s stewardship. That growth has been further boosted by additional cost savings from PNC’s OCIO offering and fixed income solutions. But perhaps most notably, the District has achieved its goal of fully funding its OPEB plan, enabling benefits to be paid directly from plan assets.

Dickas pointed to these early financial outcomes as evidence that the District remains on course in fulfilling its commitments to employees and retirees. However, he noted that performance metrics alone are not the sole indicator of success. Equally important are the ancillary benefits of the PNC partnership: quality reporting, strategic guidance and planning for the future—enabled by a modeling framework that gave the District clearer visibility into funding progress.

“We were impressed by the forward-looking aspect of the partnership,” Dickas said. “It wasn’t just about reporting out successful performance metrics. They were focused on our ultimate goal, how we plan for that and ultimately, achieve it.”

What's next?

As the partnership continues to mature, the District may explore additional steps to derisk its investment allocation and protect against future market volatility. For now, however, the District is focused on maintaining the trajectory that has already delivered meaningful progress.

“We recognize that we’ve made some tremendous strides already,” Dickas said. “We’d like to continue the course.”

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For more information on how PNC has helped organizations like yours, please reach out to your PNC representative, or contact us.