Actuaries tell Southborough Select Board OPEB liability fell as assets gained, funded ratio remains under 10%

Amanda Makarevich, an actuary with KMS Actuaries, and Michael Bubillo, associate actuary at KMS, presented the town's annual other post-employment benefits (OPEB) valuation at the Select Board meeting. The consultants said the town's OPEB trust had a market value of about $3,681,000 as of June 30, 2024, and the total OPEB liability measured for GASB reporting was $42,362,000, leaving a net OPEB liability of roughly $38,680,000 and a funded ratio of about 8.69 percent.

Makarevich said the valuation follows GASB 74 and 75 reporting rules and noted: "GASB does not require funding OPEB liabilities, just reporting them." The firm described the valuation as a roll-forward from the prior year's census data (no new census was collected for this report) and explained the three inputs to the model: the census, plan provisions and actuarial assumptions.

KMS told the board the plan's discount rate increased to 6.48 percent for the June 30, 2024…