Other Post-Employment Benefits

• • • Establishment of an irrevocable trust to pay current retiree health costs and to accumulate funds for future retiree health costs;
      
      
    • Development of a rate to apply to every dollar of payroll, in all Resources that have payroll, to cover the annual current cost (“pay-as-you-go”) plus a minimum of $250,000 annually to provide for future retiree health costs. This will include application of the rate to grant and categorical programs in accordance with OMB Circular A-21 and the State Chancellor's Accounting Advisory - GASB 45 Accounting for Other Post-Employment Benefits;
      
      
    • Application of investment earnings over time to contribute to the reduction of the outstanding OPEB liability.
      
      
    •  Accumulate a maximum of 50% of the outstanding OPEB liability to generate sufficient earnings to fund annual retiree health costs;
      
      
    • At least annually, transfer all funds provided by the retiree healthcare rate to the irrevocable trust;
      
      
    • Pay all retiree healthcare costs from the irrevocable trust. 
      
      

To comply with Education Code Section 84030 and the California Community Colleges Budget and Accounting manual relative to OPEB financial transactions, the District established a new Internal Service Fund to account for the financial activity of the Plan.​​