A Simple Solution to a Complex Problem
The Tegrit OPEB Funding Trust Program allows state and local governments to save and grow assets to offset their future retiree health care liability. This program was created in response to the Government Accounting Standards Board Statement 45, Accounting and Financial Reporting for Other Post-Employment Benefits (OPEB), which established accounting and reporting requirements for governmental employers providing retirement health care and other non-pension benefits. By joining the Funding Trust Program, employers create a 115 Governmental Integral Part Trust that dedicates assets to OPEB. Reasons to Fund your OPEB Liability- Earnings on assets can help reduce long-term employer contributions and unfunded liability.
- May prevent your net OPEB obligations from becoming a significant liability on your balance sheet.
- May foster more accountability and facilitate informed budgetary decisions.
- May assist governments in projecting a positive image to credit rating agencies.
Features & Benefits
- Assets may be invested in numerous diversified investment options, allowing employers to use investment earnings to help pay for retiree health benefits and other post-employment benefits.
- Using long-term investment rate assumptions, also known as discount rate of assumptions, may reduce annual expenses and unfunded liabilities for OPEB costs.
- Assets, legally protected from creditors, are dedicated to providing benefits such as retiree health premiums and cannot be diverted for other purpose, such as budgetary emergencies.
- Economies of scale lower costs for participating employers.
Other Services
- Fiduciary oversight of program's operation by Tegrit Investment Advisors.
- Quarterly statement of account activity and comprehensive annual reports.
- Online access to account information.
For more information, click here to find answers to frequently asked questions.
Tegrit Financial Group has made every effort to ensure that the information provided is accurate and up to date. This document is not intended to be nor should it be construed or used as an offer to sell or as a solicitation of any offer to buy shares or limited partnership interests to any fund. Contact Tegrit Financial Group to obtain more details about Tegrit OPEB Services.
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OPEB Funding Trust
