Title
OPEB Trust Fund Agreement and Investment Policy - Approval
History
In response to the release of the Governmental Accounting Standards Board (GASB) Statement No. 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB), the Village Board previously approved the creation of an OPEB Trust Fund, a fund that will hold monies set aside for post-employment retiree health insurance benefits and contributions to post-employment health reimbursements accounts (HRAs). At the time of approval of the OPEB Trust Fund, Village staff indicated that they would work with Village's legal counsel and auditors to draft the appropriate documentation. Village staff is now bringing the Retiree Health Insurance Trust Agreement and the OPEB Trust Fund Investment Policy to the Board for formal approval.
On September 4, 2018, this item was reviewed by the Finance Committee, recommended for approval and referred to the Village Board of Trustees for consideration.
Financial Impact
Establishment of this fund will help offset the long-term liabilities that GASB Statement No. 75 requires the Village report on its balance sheet. Funding of this trust will be included in the Village's budget on an annual basis.
Recommended Action/Motion
I move to approve the Village of Orland Park Retiree Health Insurance Trust Agreement and the Village of Orland Park OPEB Trust Fund Statement of Investment Policies and Objectives.