OPEB commission continues work

The special commission created by last fall’s pension reform act to study other post-employment benefits (OPEBs) has met three times in an effort to conclude its work by Nov. 30.

“The first two meetings focused on gathering information as to the extent and nature of the situation,” said Shrewsbury Town Manager Dan Morgado, the municipal representative on the commission, “with meetings three and four to focus on options and further analysis.

“The Special Commission has received to date a great deal of information,” he said. “Consensus is that reforms are necessary, but the extent and nature of the reforms will not be determined until the special commission concludes its deliberations.”

The commission is focused on the scope of these benefits – mainly health insurance for retirees – and how to pay for them. The Massachusetts Taxpayers Foundation estimates municipal OPEB liability at between $25 billion and $30 billion statewide.

While these conversations continue, communities are beginning to set aside money to fund their liabilities. While pre-funding is not required, under new accounting guidelines communities are required to report on their liabilities.

Communities have two pre-funding options under state law: to establish a trust fund or to invest their funds in the State Retiree Benefits Trust Fund, the fund that manages the state’s OPEB liabilities.

The Health Care Security Trust Board oversees the state fund. For more information, visit www.mass.gov/anf/srbtf.html.