Smoothly Navigate the Requirements of GASB 43 & 45
Benefit Trust Company has a team of experts that are dedicated to helping our public entity clients navigate the complex maze of regulations and requirements for Governmental Accounting Standards Board (GASB) Statements 43 and 45. We help government entities design and implement innovative solutions to meet the new requirements for reporting post-employment benefits (OPEB) on an accrual basis, including retiree health, life, dental, and vision care.
Benefit Trust Company has established a proprietary Section 115 Trust for our public entity clients who wish to minimize the impact of the new accounting rules. Under this agreement, we serve as a Discretionary Trustee, accepting responsibility for all of the caretaking and investment management of trust assets. This irrevocable trust format enables our public entity clients to delegate a large portion of the fiduciary responsibility imparted to them under local law, and simplifies their own processing of GASB 43 and 45. These duties often include the obligation to:
  • Determine the anticipated liabiliaty for future benefits;
  • Prudently invest the funds in order to safeguard principal, meet liquidity needs and achieve an appropriate investment return;
  • Administer the program for the exclusive purpose of providing benefits to participants and their beneficiaries; and
  • Engage in a prudent process for making all decisions related to the operation of the plan, including (1) the selection of investments and services for the program, (2) monitoring of the decisions periodically to ensure that they remain prudent and (3) documenting the process used to make decisions.
These fiduciary duties have been described as the "highest duty known to the law" and can lead to significant personal liability if they are not properly carried out. To the extent the officials to whom these functions are delegated do not have the expertise -- or, more practically, the time to devote to these matters -- as fiduciaries, they are required to obtain expert assistance to help them fulfill these obligations.
Let Benefit Trust customize the solution that best meets the needs of both your public entity and its retirees.