SOUTHWICK – The Southwick-Tolland-Granville Regional School Committee took the first step toward funding the state mandated OPEB (Other Post Employee Benefits.)
OPEB is an accounting concept created by the Governmental Accounting Standards Board (GASB) by pronouncements designed to address expenses that entities may or may not be legally bound to pay, but pay as a moral obligation.
OPEB are post-employment benefits that an employee will begin to receive at the start of retirement. This does not include pension benefits paid to the retired employee.
All communities should be setting aside funds for OPEB. However, most have not yet begun to funnel money into such accounts.
The committee yesterday unanimously approved creating an OPEB Liability Trust Fund and transferring $10,000 from the 2013 salary reserve account to the fund.
Committee member Darrell Cass questioned whether or not the district could afford it at this time and said it was a “voluntary” effort.
“I do not see this as voluntary,” said Superintendent John Barry. “The business of starting it and funding it is what we have to do.”
Committee member Ted Locke pointed out that OPEB affects the town’s credit rating.
“If you don’t start it, investors will look at it like you’re not addressing it,” said Locke.
Barry assured the group that the $10,000 figure was “not arbitrary.”
“Steve and I put a lot into this,” Barry said of himself and Business Manager Steven Presnal.
Barry said once the fund is started, the committee has the option of choosing to fund it each budget year or not.
Committee Chairman James Vincent said OPEB has been talked about for several years.
“All the auditors are saying you have to do something,” he said.
