Read with lunch today – the Massachusetts Municipal Association’s April Bulletin has an article on the “other post-emloyment benefit” (OPEB) costs, which are mainly health insurance. Medfield’s unfunded OPEB health insurance liability is about $43 m., and the Board of Selectmen has agreed to look into what to do about it.
MMA’s article states that most towns have not funded OPEB, and are merely paying for it as they go along. I understand that while we are not funding the liability, the liability is also growing larger each year at a substantial rate – $1.5 m. this past year is what Mike said.
The article says that any funding town sets aside can be invested with the State Retiree Benefits Trust Fund (which has $49 b. in funds), which gets one the benefits of a large scale investment, without the management costs and/or risks of dealing with a small amount.
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