Bill > H5947

This bill amends audit compliance requirements for municipal pension and other post-employment benefit (OPEB) plans by establishing more detailed reporting and funding standards. Specifically, if a municipality contributes less than 100% of its actuarially determined contribution (ADC) to pension or OPEB plans, it must submit recent actuarial valuations and management recommendations to the auditor general and revenue director within three months of completing its financial statement. The bill updates terminology from older Governmental Accounting Standards Board (GASB) statements to more current GASB requirements and provides municipalities with additional guidance on creating OPEB trust agreements. Municipalities are now required to consult with the auditor general until approved pension and OPEB funding plans are adopted, and the bill clarifies that municipalities can establish trust agreements to manage OPEB funds, including investing those funds consistent with prudent investment practices. The legislation aims to improve municipal financial transparency and long-term fiscal planning for retirement and healthcare benefits for employees, with the changes taking effect immediately upon passage.

Budget and Finance, Housing and Urban Affairs

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