We have provided healthcare benefits to our retirees for decades, but we have expressly reserved the right to alter or discontinue benefits. Do we have to book an OPEB liability under GASB 45?
Probably. While employers often stipulate that post-employment healthcare benefits are not vested or that the employer has the right to amend or discontinue benefits unilaterally, the current plan and the employer’s historical pattern of providing benefits up to the time of the valuation provide the most objective and reliable basis for projection of benefits for financial reporting purposes. Consult with your attorney on the specific situation in your municipality.
Related Questions
- We have provided healthcare benefits to our retirees for decades, but we have expressly reserved the right to alter or discontinue benefits. Do we have to book an OPEB liability under GASB 45?
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- What group term life insurance benefits are provided to retirees?
