GASB 75 – OPEB Liabilities Take Center StageCategories: California Developments,National Developments,New England Developments,OPEB/GASB 45/75
Recently announced GASB Statement 75 will significantly alter the reporting standards of GASB 45, escalating OPEB liabilities and increasing pressure on public agencies to prefund these obligations. Beginning in 2017, GASB 75 will move accounting for OPEB liabilities from a footnote on financial statements directly to balance sheets and change the way liabilities are calculated.
NOW IS THE TIME TO PREFUND YOUR OPEB LIABILITY
The ONLY way to offset your OPEB liability is to prefund in a federal and state compliant trust like the PARS OPEB Trust Program.
The PARS OPEB Trust Program is one of the fastest growing OPEB trust programs in New England where 33 public entities have joined this year alone. Key program features include:
- “Turn-key” model that combines trust administration, trustee, compliance monitoring and investment management services
- Flexible funding options with no minimum contributions or mandated funding schedule
- Signature-ready trust and implementation documents
- Massachusetts-based service team
- IRS-approved prefunding vehicle
- Economies of scale as more entities join
- Safety and security of assets provided by one of the largest OPEB trustee’s in the nation, U.S. Bank
The PARS OPEB Trust Program is a unique multiple-employer OPEB trust program for public entities to prefund retiree healthcare benefits.It is one of the nation’s largest private OPEB trust programs, now in six states, with over 190 participating municipalities, school districts and special districts. PARS is partnered with U.S. Bank and Vanguard to offer flexible and low-cost investment solutions designed to fit any OPEB funding need.