Three GASB 74 Requirements to Remember When Establishing an OPEB Trust

Woman in a yellow top dropping a coin into a piggy bank for savings

KEY POINTS OPEB plans offer benefits other than pensions for former or retired employees such as healthcare, dental insurance, life insurance, and other ancillary benefits. Many states and municipalities are moving away from a pay-as-you-go model and addressing their growing unfunded OPEB liabilities by establishing a trust.   For a trust account to be considered an…

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Top 5 Factors that Determine Your OPEB Discount Rate

Close up shot of two men, a town employee and an actuary, reviewing documents to determine the OPEB Discount Rate

KEY POINTS Per GASB Statement 75, government entities that sponsor Other Postemployment Benefits (OPEB) Plans are required to get a valuation done at least every other year.  In order to determine your Total OPEB Liability (TOL), an actuary will establish a discount rate that will apply to all future expected benefits payments. As a government…

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10 Key Assumptions or Factors Used to Determine Your OPEB Liability

Government employees discussing actuarial valuation report

KEY POINTS OPEB (“Other Postemployment Benefits”) plans offer benefits to former or retired employees other than pensions such as healthcare, life insurance, dental insurance, and sometimes more.  Government entities are required to have an actuary value these benefits for financial statement reporting. It’s important to understand how your actuary determines the assumptions used to calculate…

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GASB 67 and GASB 68: What’s the Difference?

Government employee standardizing pension plan reporting in compliance with GASB 67 and GASB 68.

Key Points Governmental Accounting Standards Board Statement No. 67 (GASB 67) – Financial Reporting for Pension Plans Governmental Accounting Standards Board Statement No. 68 (GASB 68) – Accounting and Financial Reporting for Pensions GASB 67 and GASB 68 changed the way public pension plan data is measured and reported, effectively replacing previous statements GASB 25…

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What Are the Advantages and Disadvantages of an OPEB Trust?

Two people sitting at a desk discussing their town's OPEB funding policies.

KEY POINTS A majority of state government entities have large unfunded OPEB liabilities.  Establishing an OPEB Trust can help mitigate your liabilities, increase your credit rating, and enhance generational equity.  You must also keep in mind the costs associated, the time and resources needed to govern the trust, and that the funds can only be…

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Social Security and Government Pension Offset Simplified

Retired couple who used to be a teacher and CPA enjoying coffee.

KEY POINTS Government Pension Offset (“GPO”) adjusts Social Security spousal or survivor’s benefits for those who receive “non-covered” pensions. GPO reduces Social Security spousal and survivor benefits by 2/3rd of the monthly pension payment from a non-covered government job. The bipartisan Social Security Fairness Act (“SSFA”) bill, designed to eliminate both GPO and the Windfall…

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What Happens if I Don’t Name a Beneficiary? Who Gets My 401(k)?

A family of three enjoys a nice day sitting in the grass at a park

KEY POINTS Neglecting to name a beneficiary means your assets may be designated to your estate and become subject to probate. Plan ahead to review your beneficiary information once per year and when major life changes happen. Avoid subjecting your loved ones to the probate process by designating both primary and alternative beneficiaries. You may…

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Required Minimum Distributions are Back. Tell a Friend.

Mid-aged man helps older woman determine her required minimum distribution amounts for 2021

Key Points The one-year waiver of required minimum distributions (RMDs) for retirement accounts that were authorized under the CARES Act is over. The SECURE Act in 2019 changed some rules regarding RMDs which will now be in effect. Those that are 72 years and older will need to start taking their RMDs this year to…

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