Is funding of the OPEB liability required by GASB?
No, pay as you go procedures are still allowed. In most instances, GASB 45 simply requires that the OPEB liability be calculated, disclosed and reported. However, given the potential enormity of the OPEB liability and the potential impact on the governmental entities credit worthiness or ability to issue bonds, many governmental entities are considering plan design and funding alternatives to mitigate their growing financial exposure.
