The Governmental Accounting Standards Board (GASB) requires public employers to report the annual cost of post-employment benefits (excluding pensions), known as Other Post-Employment Benefits (OPEB).

The way you meet GASB requirements before implementation of OPEB can affect your annual cost. Consider:

• Prefunding – Should you set aside funds and pay with contributions and investment income, or should you only use contributions to fund benefits?
• Actuarial cost methods – Which of six acceptable methods is best for your organization’s funding policy?
• Structure of entity – Is the plan a cost-sharing, multiple-employer or agent-multiple-employer system?
• Amortization of any Unfunded Accrued Liability (UAL) – What is the amortization period (up to 30 years)? Is the period open or closed?  Are payments in flat dollars or do they grow with total payroll?
• Actuarial assumptions – What are the investment returns, payroll growth, health care cost trends and demographics?
• Asset-valuation methods – Should you value your plan assets according to their market-related (actual market) value, or should you average your returns over a longer period?

Here's how we can help.
Our team of experts can help you navigate GASB rules and changes to find the best approach for your organization and your retirees.

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