Wednesday, February 03, 2010

Another long-term liability: OPEB

OPEB = Other Postretirement Employment Benefits

OPEB is not part of the pension plans. It relates to medical benefits and is big. And though it's been getting discussed by the Government Accounting Standards Board for some time, it's now nearing implementation.

On the liberal side, there may be a request for the Town to fund $2 million in an OPEB account next year. But I don't see that happening. Assuming the fund is created, funding would probably be more conservative... to the tune of a few hundred thousand dollars... still not chump change though.

But who would benefit from the OPEB fund?

My understanding is that it would apply to all Cheshire unions:


Town Hall
Public Works



But the lion's share of the expenditures would relate to the police and teachers because that's how the union contracts are written.

Tim White


Anonymous said...

This is the real elephant in the room. How the hell are we going to pay for all these promises?

Wake up public.

Public employees used to get paid less than the private sector but benefits smoothed things out. Now whether you're a public works maintainer, a cop or a teacher you can count on a very fat pension after 25 years of service. Not bad... get a fulltime job at 55 and draw a 50K pension. Not a bad racket. What a screwball...should have done this myself.

60+ people at last nights BOE meeting excluding elected officials...45 were public employees. Do you feel like you were represented there?

Anonymous said...

Let them attend. I feel the new TC went out and talked to many people during their bid for election and have come away with a fair understanding of the pulse of the town. Town residents and taxpayers should get to speak first at BOE and TC meetings.