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Other Post Employment Benefits (OPEB)

The purpose of this webpage is to share the District's approach to funding the OPEB Liability and report the progress toward the Board approved funding plan and goal.

Background
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The granting of post-employment retirement benefits, especially "life-time benefits" was very
popular in the 70's and 80's. At that time employers did not understand the cost implications of
these programs and, as such, did not make any special provision for their funding. When there
became a greater awareness of the true costs of providing these benefits, a number of years
had passed with districts having done nothing to set aside funds for these programs. Districts
began paying more attention to this issue. Some moved to close off eligibility for such benefits.
Actuarial studies became common place even before districts were mandated to do so. The
studies told us not only how much the whole program should cost, but also how much we
should already have saved for future costs. That is good information but didn't change the
reality faced by the districts.

In 2006, the Governmental Accounting Standards Board (GASB) instituted a reporting
requirement for all public agencies regarding the costs and liabilities associated with other post employment benefits (OPEB). The only retiree benefit that exists for the District, other than
pension benefits, is health insurance. The District's first OPEB actuarial report was obtained in
2008 and was updated in May 2012. As additional studies are completed the typical results of
each succeeding report reflects how much the debt has grown and how much further behind the
district has fallen in terms of addressing this obligation.

Plan
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The chart below illustrates the District's liability as of the May 2012 actuarial study and the board approved funding plan to save $21.1 million to off-set the annual increasing costs. The District will re-evaluate the funding plan after the 2016 Actuarial Study is performed.

Click chart to view enlarged .pdf
* Charts are updated as new data becomes available
Chart

The chart below illustrates the District's planned and actual annual contributions to reach the $21.1 million required of the board approved funding plan.

Click chart to view enlarged .pdf
* Charts are updated as new data becomes available
opebchart

Reports

Actuarial Study of Employee Health Benefits
Issued by Total Compensation Systems, Inc.
- Feb 05, 2014

Board Approved Funding Plan for Other Post Employment Benefits
Report to the Board of Trustees

- Apr 16, 2013
District Approach to Funding OPEB Obligation
Developed by Michael Hill, District Administrative Consultant
- Feb 12, 2013

Actuarial Study of Employee Health Benefits
Issued by Total Compensation Systems, Inc.

- May 10, 2012

Actuarial Study of Employee Health Benefits
Issued by Total Compensation Systems, Inc.

- Nov 20, 2008

News
New

Delta's $122M Dilemma
Stockton Record
- Feb 21, 2013

 

Page last updated:
September 25, 2014 12:33 PM

 

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San Joaquin Delta College
5151 Pacific Ave
Stockton, California 95207
(209) 954-5151

 

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