Monroeville councilors spent substantial time reviewing the borough's post-retirement benefits (OPEB) account after auditors and staff warned the account no longer reflects the long-term liability it was meant to hold.

Finance staff and auditors explained that the OPEB trust has about $8 million in assets but the actuarial obligation is many times larger (auditor estimates cited in the hearing were in the $40 million range). The auditors have advised that the trust's balance and the general fund "due to/from" relationship means the trust may no longer be reported as a fully funded trust on the borough's financial statements.

"If we're not going to fund the OPEB fund, we're probably going to have to put a couple million dollars in each year in addition to the retiree insurance we already pay," an auditor told council, summarizing options to shore up the liability. Council members discussed alternatives including continued incremental funding, retiring the 'due to/from' over a multi-year plan, or restructuring the approach to retiree benefits.

Manager Alex Graziani and finance staff said the issue will require further policy discussion: "You're never gonna escape the obligation to pay your post-retirement benefits," Graziani said, noting the choice facing council is whether to maintain the separate trust or reallocate those funds to other pressing capital and operating needs.

Next steps: staff and council agreed to bring detailed scenarios (costs of additional annual contributions versus alternative accounting/treatment) back to a future meeting so elected officials can weigh the fiscal trade-offs ahead of budget adoption.