Posts Tagged ‘Municipal’

OPEB, GASB 74 & GASB 75

GASB 74 is required for plan level financial reporting while GASB 75 is required for employer or plan sponsor level financial reporting  for municipal entities subject to GASB reporting that offer OPEB (medical, dental & life insurance for former employees & retirees) type benefits. GASB 74 – key issues to consider Are you prefunding your OPEB benefits…

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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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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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If you’re a participant in a government sponsored pension plan and looking to collect Social Security in retirement, you may find yourself subject to the “Windfall Elimination Provision” or “WEP”.  This mainly applies to workers in government jobs hired before 1984 whereby they didn’t pay into Social Security during their government employment, but may have…

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A Pension Obligation Bond has a ripple effect. The key is to thoroughly investigate from the outset whether or not this financial instrument is the most suitable choice. It is a long-term commitment involving a fixed repayment schedule. The rewards forever hold the promise of outweighing the risk. Each municipality has a different degree of…

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Pension funding can skew in the wrong direction if there is an imbalance between returns and expenditures. When managing assets and liabilities long-term, it is best to be cautiously optimistic about expectations. The best practice is to set levels of anticipation that err on the side of caution on both sides of the coin. The…

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A Pension Obligation Bond (“POB”) is a debt instrument issued by a municipal entity such as a Town to fund all or a portion of the Unfunded Actuarially Accrued Liability (“UAAL”) for its pension or OPEB plan. A POB is designed to take advantage of an arbitrage opportunity whereby the Town can issue taxable debt…

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Municipalities should never have to be burdened by the complexities associated with GASB 45. Here is a rundown of some principles to bear in mind. GASB 45 requires governmental organizations to report the long-term liabilities associated with OPEBs being offered to retirees. These do not include pension or deferred compensation plans. GASB 45 focuses on…

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