For those of you who don’t know about this program, the Early Retiree Reinsurance Program (ERRP) was established by section 1102 of the Affordable Care Act (ACA) enacted on March 23, 2010. Congress appropriated $5 billion for this program to be used by plan sponsors to reduce the cost of providing healthcare benefits to their early retirees, those retirees between the ages of 55 and 65.
Continue reading “Did your company or municipality recieve its share of the Early Retiree Reinsurance Program (ERRP) funds?”
St Paul Public Schools: an Education in OPEB
Saw this article yesterday about the problems the with St. Paul public schools:
http://www.twincities.com/ci_19691704
Clearly, Saint Paul Public Schools has a significant problem with other post-employment benefits (OPEB) obligations promised to its retirees. As the disclosure below from the 2010 annual report indicates, the District has only been able to pay for the pay-as-you-go amount for OPEB liabilities. While current benefits are being paid, no amounts are being set aside to fund previously accrued liabilities – which continue to compound at the rate of retiree health inflation. This is pretty typical of most municipal entities around the USA.
The presentations made to the Board of Education
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