Can a local government in New York set aside moneys in a reserve fund to help finance OPEB?
General Municipal Law, Section 6-p, allows municipal corporations in New York to establish and maintain an Employee Benefit Accrued Liability Reserve Fund to help finance the cost of certain “employee benefits”. The term “employee benefits” is defined in the statute to include accrued but unliquidated time earned by employees that is payable upon termination of service. Typically, moneys in this reserve are set aside to pay for accumulated, unused leave when an employee separates from service. Currently, moneys cannot be accumulated in this reserve for OPEB obligations. Moreover, such a reserve fund would likely not comply with all GASB requirements for a qualifying trust or equivalent arrangement. There is no other reserve fund authorized by the General Municipal Law or any other law for this purpose. As a short-term option, local governments can designate a portion of their unreserved, unappropriated fund balance for OPEB purposes and explain this designation with a footnote in their
Related Questions
- Other than the establishment of an irrevocable trust or reserve fund, what option does a local government have to fund their OPEB liabilities?
- Is there any State statute that expressly authorizes a local government in New York to create a trust for OPEB purposes?
- Can a local government in New York set aside moneys in a reserve fund to help finance OPEB?
