What does GASB say about funding OPEB liabilities?
GASB does not require that the OPEB liability of a government be funded. However, GASB has advised that if an employer decides to fund its OPEB liabilities, in order to be considered funded in accordance with GASB, the employer must transfer assets to a qualifying trust or equivalent arrangement in which OPEB assets are held in trust for the exclusive benefit of plan members and their beneficiaries in accordance with the terms of the OPEB plan. These OPEB plan assets must be legally protected from creditors of the employer.
