Bill > H5962

This bill amends existing law to require municipalities or quasi-public agencies to file an annual report with the department of municipal finance if they have not made their full annual contribution to their other post-employment benefits (OPEB) trust fund or if the trust is less than 35% funded. The report must include either a plan to make the full trust payment within three years or a plan to increase the trust's funding to at least 35% within ten years. Other post-employment benefits typically refer to healthcare, life insurance, and other non-pension benefits provided to retirees. The bill aims to improve financial transparency and ensure that local governments are taking steps to adequately fund their long-term obligations to retired employees. If a municipality fails to comply or develop an acceptable plan, they would be prohibited from selling long-term bonds to fund deficits, pension obligations, or OPEB without prior approval from state financial authorities.

Housing and Urban Affairs

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