2015-0157
INTRODUCED BY: V.J. ST. PIERRE, JR., PARISH PRESIDENT
(DEPARTMENT OF FINANCE)
RESOLUTION NO.
Title
A resolution requesting an Attorney General Opinion, to address the following question: "May a trust dedicated to the funding of post-employment benefits created by a local governing body in accordance with LRS 33:5161 invest those funds in any or all of the types of invests set forth in Subsection A of LRS 33:3162, subject to the restrictions and limitations set forth in Subsection B and C thereof?"
Body
WHEREAS, the Government Accounting Standards Board (GSB) is the independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local government; and,
WHEREAS, in June 2004, GASB issued Statement 45 (GASB 45); and,
WHEREAS, GASB 45 provides that public employers, including municipalities, parishes and school systems that provide other post-employment benefits (OPEB), such as retiree health insurance, are required to measure and disclose an amount for annual OPEB cost on the accrual basis of accounting. Annual OPEB cost is equal to the employer's annual required contribution to the plan, with certain adjustments if the employer has a net OPEB obligation for past under or over contributions; and,
WHEREAS, many municipalities, parishes and school systems including, St. Charles Parish, provide such OPEBs; and,
WHEREAS, these OPEB's are, in effect, long term obligations under GASB 45 and as such need to be off-set with long-term assets to create balance on St. Charles Parish's financial statements; and,
WHEREAS, the Louisiana Legislature, in recognition of the need to comply with GASB 45, enacted LRS 33:5161 and 5162; and,
WHEREAS, LRS 33:5161 allows for local governments to segregate funds to meet OPEB obligations, or, alternatively create trusts dedicated to meeting OPEB obligations; and,
WHEREAS, LRS 33:5162 provides for expanded areas for investment of funds placed in trust ...
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