Bill > H7369

This bill amends audit compliance requirements for municipalities regarding their contributions to pension and other post-employment benefit (OPEB) plans, which are forms of deferred compensation provided to employees after they retire, often including health and dental care. Specifically, it updates the language to refer to "actuarially determined contributions" (ADC) as defined by the Governmental Accounting Standards Board (GASB), a body that sets accounting standards for government entities. If a municipality contributes less than 100% of the ADC for its pension or OPEB plans in an audit year, it must submit its most recent actuarial valuations and management's plans for achieving 100% ADC funding to the auditor general and director of revenue within three months of completing its audited financial statement. The bill also clarifies that municipalities can establish OPEB trust agreements, which are legal arrangements to hold and manage funds specifically for OPEB costs, and requires municipalities to consult with the auditor general until approved funding plans are adopted. Additionally, it amends existing law to allow municipalities to enter into trust agreements for OPEB funding with corporate trustees, such as banks or trust companies, and outlines how these OPEB trust funds can be managed and expended. The bill takes effect upon passage.

Housing and Urban Affairs

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