Other Post Employment Benefits (OPEB)
Click here to view the District’s June 30 2015 OPEB Actuarial Valuation Report
Click here to view the District’s June 30 2013 OPEB Actuarial Valuation Report
The payment of Other Post Employment Benefits (OPEB) constitute the promise we have made to current and retired employees to continue their medical coverage and health reimbursement out-of-pocket spending after their retirement from our service. The terms of this retirement benefit are described and authorized in the District’s Administrative Code.
OPEB refers to post-employment health benefits. OPEB is often confused with pension benefits. Pension benefits are governed by the terms of the District’s participation in the Public Employees Retirement System (PERS). However, it is an accounting requirement that governmental agencies that fund post-employment benefits on a “pay as you go” basis, such as Central Basin, account for and report the outstanding obligations and commitments related to the benefit in essentially the same manner as for pensions. In order to determine obligations and commitments, the District contracts for a third-party actuarial determination of current and future OPEB plan costs.
The unfunded actuarial accrued liability related to this benefit amounted to $65,166 as of June 30, 2015. Accounting requirements do not require the District to fund its Annual Required Contribution (ARC) to the plan; nonetheless, the District pays its ARC in full each year, and enjoys a Net OPEB Asset of $32,226 as of June 30, 2015.
Also as of June 30, 2015, there were 18 active employees and 13 retirees covered by the District’s OPEB plan.