Does GASB 45 require OPEB prefunding?
GASB 45 does not require public employers to prefund OPEBs, but does require these liabilities to be reported in their financial statements. The intent of GASB 45 is to focus increased attention on nonpension retiree benefits and the need to intelligently manage these costs. Public employers choosing to prefund OPEBs can substantially reduce their long-term liabilities.
