Quabbin School Committee Establishes OPEB Trust Fund, Braces for Budget Fight

BARRE — February 8, 2018 — Quabbin Regional School District formally established an OPEB trust fund after years of auditor pressure and a looming $17 million retiree health liability. The School Committee voted unanimously, 11-0, at its February 8 meeting to accept MGL Chapter 32B Section 20 and adopt a Public Agencies Post-Retirement Health Care Plan and Trust administered by PARS, with Vanguard as investment manager and U.S. Bank as custodian. An initial $10,000 deposit, already budgeted for FY18, cannot be made for 90 days by law. Superintendent Maureen Marshall told members the unfunded liability — roughly half the district's annual operating budget — is driving the district's bond discount rate toward 2.7 percent under GASB 75, potentially inflating the paper liability by 12 to 15 percent if left unaddressed. The committee also heard a preliminary FY19 budget of $35,008,303, a 4.4 percent increase, that would push Barre's town assessment up nearly 14 percent before proposed cuts.