The Other Benefits Mess

Source: Anna Kates Smith, Kiplinger’s Personal Finance magazine, September 2007

A new regulation forces government retirement plans to reveal the cost of their health-benefit promises for the first time.

…State and local governments aren’t required to set aside money to meet future promises other than for retiree pensions. Most pay what they owe each year out of their current budget. But starting this year, government retirement plans must at least account for their long-term health care and other benefits liabilities (known as OPEB, or other post-employment benefits) and publish the calculations.

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