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…

Read More

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…

Read More

How Often Should You Do an OPEB Valuation?

Two public sector employees looking at an online calendar to determine when they need to do their OPEB valuation.

Key Point GASB Statement 75 requires state and local governments that sponsor an Other Post Employment Benefits (OPEB) Plan to complete an OPEB valuation every two years. If you’re reading this, I bet you have the exciting task of managing your town or city’s Other Post Employment Benefits (OPEB) Plan. Right now, you’re probably wondering…

Read More

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…

Read More

FSA vs HSA vs HRA: Which One is Better?

KEY POINTS The 3 most popular employer-sponsored healthcare accounts you can supplement your current healthcare insurance with are Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), and Health Reimbursement Accounts (HRA). FSAs, HSAs, and HRAs all offer tax-free savings that you can use to pay for eligible medical, dental, vision, and sometimes long-term care expenses. …

Read More

What’s the Difference Between Medicare Supplement and Medicare Advantage?

Medical professional examines a patient with Medicare Advantage

KEY POINTS Original Medicare covers a majority of basic health necessities, but not everything. Medicare Supplement (also known as “Medigap”) was designed as a supplemental health insurance policy to cover additional out-of-pocket expenses that Original Medicare doesn’t cover. Medicare Advantage (also known as Part C), is a private insurance alternative to Original Medicare, which can…

Read More

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…

Read More

What is Medicare Advantage?

A man and a woman reviewing Medicare Advantage Plans

Wading through all of the insurance plans out there can be overwhelming. Have you seen the Joe Namath commercials yet where he hypes up all the benefits of Medicare Advantage? With so many options, Medicare Advantage is a phrase you hear more often than the rest. Mainly because of how it’s funded.   What is Medicare…

Read More

Pension Contributions at Risk due to COVID-19

Close up of a man's hands who is dressed in a business suit. His hand has stopped a line of falling blocks from hitting the rest of the blocks still standing.

As we try to bestow good tidings and wishes onto 2021, we must also weather the aftershocks of 2020 which include a very prevalent global pandemic. According to an article by Pew Trusts, many states are facing budgetary shortfalls due to a loss in revenues coupled with the increasing demand for public health and other…

Read More

2020 Year-End OPEB Trend Report

2020 OPEB Trend Report

Our OPEB experts gathered the data and crunched the numbers to bring you our annual year-end OPEB Trend Report. The latests trends include insights on OPEB funding, municipal bond rates and GASB 74/75 discount rates. Download the report to discover the latest OPEB trends. Learn more about the Odyssey Advisors team.

Read More