TOWN OF GRANBY
SPECIAL PRESENTATION MEETING
JANUARY 17, 2006
First Selectman John Adams called the meeting to order at 7:09 p.m. He then introduced Becky Sielman of Milliman USA.
PRESENT: Members of the Board of Selectmen, Board of Education, and Board of Finance
A slide presentation regarding the Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions (OPEB) was presented.
Ms. Sielman began her presentation at 7:10 p.m. She provided a handout, furnishing information about GASB #43 and GASB #45 to all in attendance.
Beginning with an overview of GASB #43 and #45 she continued with:
· Who is affected?
· What benefits are involved?
· Why there are new standards as well as why there are two standards?
· When it will become effective
· Actuarial assumptions using demographic and cost assumptions
· The implicit rate subsidy
· The discount rate
· The actuarial accrued liability
· Annual required contribution (ARC)
· GASB #43 and GASB #45 – why does this matter now?
· GASB #43 and GASB #45 – Granby’s results
Ms. Sielman reviewed the town’s obligation as over $6,000,000. The Board of Education’s portion was over $4,400,000 and the balance was town employees.
Granby has to decide whether or not to set up a trust to fund these benefits by June 30, 2009. The main issue the town needs to accomplish is to have a plan for this liability because it will become part of our balance sheet.
A question and answer period followed.
Ms. Sielman’s presentation concluded at 8:05 p.m. and the meeting was adjourned.
Respectfully submitted,
William F. Smith, Jr.
Town Manager
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