Posts Tagged ‘Pensions’

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…

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As a cost-sharing employer, did the retirement system provide you the necessary year-end disclosures for GASB 68? Many housing authorities, utility districts and other smaller members of large retirement systems approach their fiscal year end and face their first time complying with GASB 68 “Accounting & Financial Reporting for Pensions”.  As you’re likely aware, GASB…

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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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Municipal employees discussing common issues around a conference table

Two of the largest issues facing municipalities today are underfunded pensions and unfunded “other” post-employment obligations (“OPEB “). Historically, public accounting rules have allowed these obligations to be largely hidden or less visible to investors and taxpayers. Change is being phased in through the introduction of new GASB standards that require municipalities to disclose the…

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