Sustainable Funding Practices for Defined Benefit Pensions and Other Postemployment Benefits (OPEB)

The fundamental financial objective of government employers that offer defined benefit (DB) pensions and other postemployment benefits (OPEB) to their employees is to fund the long-term cost of the benefits promised to participants. It is widely acknowledged that the appropriate way to attain reasonable assurance that benefits will remain sustainable is for a government to accumulate resources for future benefit payments in a systematic and disciplined manner during the active service life of the benefiting employees. This session will provide an overview of GFOA best practices related to sustainable pension and OPEB funding and share examples of local governments that have put themselves on a path toward sustainability.

Learning Objectives

• Define the key components and considerations of a sustainable pension and OPEB funding policy
• Identify actuarial methods, timing, and other inputs that will impact the frequency and results of actuarial studies
• Review options to reduce volatility of annual actuarily required contributions

SM

Tina M Lausier, Scott McCarty,

2 CPE credits

Basic