|
Benefits of OPEB Advantage
- Budgetability. Contribute monthly on a fixed payment schedule, bridging the gap between “pay as you go” and the Annual Required Contribution (ARC).
- Favorable financial accounting presentation. Unconsolidated, special purpose entity disclosed via footnote not as balance sheet item.
- Asset/Liability Management. Note proceeds are invested to hedge against healthcare inflation and accumulate reserves.
- Discount Rate. GASB 43/45 allows pre-funding jurisdictions to use a more favorable interest rate to calculate
OPEB liabilities.
Government agencies like yours face a daunting new challenge. The Government Accounting Standard Board (GASB) requires that you account for future OPEB liabilities. You need to address a massive obligation fueled by rising healthcare costs and underfunded reserves. You want to provide for your employees but fear straining an already tight budget.
OPEB Advantage™ offers a powerful solution for affordably funding OPEB liabilities.
OPEB Advantage is based on Dryden's proven Advanced Funding Program for managing and funding long-term healthcare expenditures. This groundbreaking solution combines healthcare risk management and structured finance to convert volatile expenses into a manageable, “budgetable” item that can significantly reduce costs.
Dryden customizes the best program to meet your needs, including:
- Actuarial Assessment and Modeling
- Structured Finance and Funding/Investment Optimization
- Tax, ERISA, Legal and Accounting Treatment
- Economic and Terms Sheet Validation
- Documentation and Execution
Working through its investment partners, Dryden executes all financing and investments with a large network of highly-rated banks and financial institutions carefully selected for price, quality and ease of implementation.
|
 |
