This note is required if you provide any other than pension postemployment benefits (OPEB). Please see Accounting/Liabilities/Other Postemployment Benefits (OPEB) for details.
Note X – Other Postemployment Benefits
The following paragraph is recommended in the year of implementation:
During the year ended (fiscal year end), the (city/county/district) adopted guidance for the presentation and disclosure of postemployment benefits other than pensions, as required by the BARS manual. This requirement resulted in the addition of a postemployment benefit liability reported on the Schedule of Liabilities.
The following is required in the year of implementation and each year thereafter:
If the government provides other postemployment benefits (OPEB), include the following information for each plan:
- The name of the OPEB plan, the name of the plan administrator, and identification of the OPEB plan as either a defined benefit plan or a defined contribution plan.
- A brief description of the benefit terms.
- The number of OPEB plan participants (active and retired).
- For defined benefit plans only – The amount of the OPEB liability as of the reporting date (should agree to Schedule 9). If the alternative measurement method was used (e.g. the Office of the Washington State Actuary tools), that fact should be disclosed.
- The dollar amount the employer contributed during the reporting period.
Instructions to preparer:
Examples:
The (city/county/district) is a participating employer in the state’s Public Employees Benefits Board (PEBB) program, a defined benefit plan administered by the Washington State Health Care Authority. The plan provides medical, dental, and life insurance benefits for public employees and retirees and their dependents on a pay-as-you-go basis. The plan provides OPEB benefits through both explicit and implicit subsidies. The explicit subsidy is a set dollar amount that lowers the monthly premium paid by members over the age of 65 enrolled in Medicare Parts A and B. PEBB determines the amount of the explicit subsidy annually. The implicit subsidy results from the inclusion of active and non-Medicare eligible retirees in the same pool when determining premiums. There is an implicit subsidy from active employees since the premiums paid by retirees are lower than they would have been if the retirees were insured separately. The (city/county/district) had (number) active plan members and (number) retired plan members as of December 31, 20__. As of December 31, 20__, the (city/county/district)’s total OPEB liability was ($____) as calculated using the alternative measurement method. The (city/county/district) contributed ($____) to the plan for the year ended December 31, 20__.
The LEOFF I Retiree Medical Plan is a closed, single-employer, defined-benefit OPEB plan administered by the (city/county/district) as required by (RCW __.__.___). The plan pays for 100% of eligible retirees’ healthcare costs on a pay-as-you-go basis. As of December 31, 20__, the plan had (number) members, all retirees. As of December 31, 20__, the (city/county/district)’s total OPEB liability was ($____), as calculated using the alternative measurement method. For the year ended December 31, 20__, the (city/county/district) paid ($____) in benefits.
The (city/county/district) administers the Retirees Life Insurance Plan. The defined benefit OPEB plan provides a death benefit for eligible retirees of $50,000. The (city/county/district) pays 100% of annual life insurance premiums on a pay-as-you-go basis. For the year ended December 31, 20__, the plan had (number) active employees and (number) retirees and the (city/county/district) contributed ($____) in premium payments. The total OPEB liability was ($____) at December 31, 20__.