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Business and Policy Areas
Business and Policy Areas
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OPEB Comments Due to GASB by April 30

April 22, 2004

After considering the comments it received, the Governmental Accounting Standards Board released a revised Exposure Draft on Other Post Employment Benefits on January 30.

The GASB now believes that implicit rate subsidies should not be exempted from a college’s calculation of its OPEB costs and obligations. An implicit rate subsidy occurs when retirees participate in the same health care plan as active employees and pay premiums that do not necessarily reflect the age-graded claims cost for retirees.

NACUBO survey results for 168 public institutions indicate that 25 percent of institutions have an implicit subsidy and will be affected by this change. Public institutions must submit comments to GASB by April 30. NACUBO encourages institutions to respond, contact us with your opinions, or view our comment draft and provide feedback.   

The NACUBO contact is Sue Menditto, senior manager, accounting and finance programs.