VACo/VML Pooled OPEB Trust
Virginia local governments, school districts, and authorities now have a streamlined and cost-effective investment vehicle for funding Other Post-Employment Benefits (OPEB). Under GASB Statement 45, all governmental bodies with total annual revenues of at least $10 million must report their OPEB liabilities on their FY 2009 financial statements. The requirement expands to all governmental bodies in FY 2010. Local governments accrue OPEB liabilities whether they offer explicit non-pension benefits for retirees (typically health insurance) or merely allow retirees to participate in benefit plans for active employees.
Local governments may avoid showing this potentially large and increasing liability on their balance sheets by funding their OPEB liabilities as they accrue. The amounts funded are invested, yielding earnings that can reduce the long-term cost to the local government by as much as 50%.
The VACo/VML Trust is the only pooled OPEB trust fund offered in Virginia. Trust participants receive professional investment management on par with the services provided by major pension funds. Yet, the VACo/VML Pooled OPEB Trust is the simplest and lowest cost option available—and you avoid the expense and hassle of forming a separately-managed trust fund.
Our participants have invested approximately $150 million to date, making the VACo/VML Pooled Trust among the largest in the nation. Investment decisions are made by the Board of Trustees. Our investment consultant, Evaluation Associates LLC, is one of the leading firms of its kind in the U.S.
The VACo/VML Pooled OPEB Trust offers:
- Access to the best performing investment funds in the nation, including those with high minimum investment requirements applicable to major institutions;
- A more diversified portfolio with less expected volatility;
- Leading professional investment advisors and managers—providing sophisticated expertise and research capabilities to help guide investment decisions;
- The lowest cost option, offering cost sharing and economies of scale;
- Directed and controlled by local government officials – i.e., participants elect trustees who oversee the Trust;
For more information, or to join the Pooled Trust, select the following links:
