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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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…

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GASB 75 – What is OPEB Covered Employee Payroll?

5 people standing in front of mountain views holding their hands up

So, it’s time for another OPEB valuation under GASB 75 and the actuary is asking for the “covered employee payroll” for the fiscal year or measurement period. While OPEB benefits are rarely impacted by compensation or covered employee payroll, such a figure is a required disclosure item under GASB 75 and hence that’s why you’re…

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GASB 75 Makes the Wall Street Journal

Man reading a newspaper - GASB 75 makes the Wall Street Journal

The Wall Street Journal recently published an article about the impact of GASB 75 on municipal balance sheets . The estimated nationwide impact will be a $645 billion increase in balance sheet liabilities. The increased attention that GASB 75 brings to Other Post-Employment Benefits (“OPEB”) will lead to increased pressure on municipalities across the country to manage OPEB liabilities. The…

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What is the Difference Between GASB 74 and GASB 75?

Government Employee Retiree on a hike

KEY POINTS Governmental Accounting Standards Board Statement No. 74 (GASB 74), Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes financial reporting standards for plans that administer OPEB (Other Postemployment Benefits) on behalf of governments. Governmental Accounting Standards Board Statement No. 75 (GASB 75), Accounting and Financial Reporting for Postemployment Benefits Other than…

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How much does a OPEB or GASB 45/75 valuation cost?

This, of course, is one of the key questions that a Treasurer, Auditor, Accountant or School Business manager has when they begin researching the costs of GASB OPEB compliance. Here at Odyssey Advisors, I get this question hundreds of times each year from entities large & small. We understand. Price, among many factors, matters. Especially…

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Medicare Part D – High Cost drugs drive up OPEB costs

Prescription Drugs under Medicare Part D

So, you’re an employer who generously offers medical benefits to your retirees. If so, you’ve seen prescription drug prices skyrocket over the last several years – increasing by an average of 14% per year from 2011-2015 and continuing through today. Prescription drug spending by retirees enrolled in the Medicare Part D program has been growing…

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OPEB/GASB 75 Lunch & Learn

You’re Invited To A Complimentary Lunch & Learn Seminar When: Wednesday, May 24, 2017 11:30 am – 1:30 pm Where: Sheraton Framingham Hotel & Conference Center 1657 Worcester Road, Framingham, MA 01707 (508) 270-1927 Please join us for a complimentary educational lunch on timely and trending OPEB topics (retiree healthcare liabilities) Complying with New GASB 75…

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