Formation of WI OPEB Trust
The Governmental Accounting Standards Board released GASB 43 and GASB 45, new standards required state and local government agencies to report OPEB obligations on financial statements.
Improved Transparency, New Opportunities
The new reporting requirements increase transparency and help public sector organizations better communicate the cost of other post employment benefits to stakeholders. Assessing and reporting these obligations is a first step. But, many government agencies were looking for more. With costs for other post employment benefits rising, some school districts and state/local government agencies began seeking new strategies to manage OPEB obligations.
A Team Approach
Cooperative Educational Service Agency (CESA) 6 recognized the need and brought together industry leaders to develop a turn-key solution to designing, developing, administering and investing other post employment benefits earned today for tomorrow. Sponsored by CESA 6, the Wisconsin OPEB Trust Fund was designed in partnership with Associated Wealth Management, Graystone Consulting, Diversified Benefit Services, Inc., Key Benefit Concepts and Phillips Borowski.
Being Proactive
The Wisconsin OPEB Trust represents a shifting mindset. Until recently, many public sector organizations utilized a ‘pay-as-you-go’ approach to other post-employment benefits. Much like social security, costs for today’s retirees and beneficiaries are paid for by today’s employees.
Forward-thinking school districts and government agencies are embracing a new approach, where other post employment benefits are expensed and invested as they are earned, softening the impact of future liabilities. By planning today, these organizations will benefit tomorrow.
Changing Times
Wisconsin OPEB Trust is keeping pace with districts changing financial environments. We offer post-employment HRAs and a new guaranteed fixed rate annuity investment. option.
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