Thursday, June 21, 2012

Elimination of unfunded liabilities

The PdC Public School District is making progress toward the elimination of all unfunded liabilities. The vested future costs of benefits owed to current retirees will be fully covered by a final deposit into a separate Fund 73 account. This account is managed by an outside firm and the money is invested in a very conservative portfolio. In addition, we are making the adjustments to make deposits to cover promised dollars to employees that flow into future years under handbook rules in three categories; Vacation, PTO, and HRA dollars.

DPI and our auditors have approved the use of Fund 73 for those vested employee dollars also. The link below is to the GASB rules under which this is allowed/recommended. With these year-end deposits, the district should have no OPEB or other unfunded liaibilties. To be fiscally responsible and to protect our current and retired employees, the School Board has made locking these dollars in place a priority item. This is important to retirees, and to current staff, as there is now money set aside to cover future expenditures equal to what has been promised as benefits.

Click here to view copy of GASB rules

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