May 16, 2013
Last Monday I wrote about the coming train wreck in health insurance premium increases. Today I want to point out a change that could save the City of Memphis millions of dollars in the coming year and in the future.
Again I point to the Shelby County government as a model of fiscal responsibility. In June 2007 the Shelby County government passed a resolution to provide for OPEB benefits and approve changes to health insurance benefits to employees and retirees.
Shelby County acknowledged that the Government Accounting Standards Board issued Statement No. 45 (GASB 45) and that the new standard recognized that the expense must be recognized as the benefits are earned rather than as they are paid. The resolution went on to say that the County’s actuaries calculated the annual required contribution to be $49 million, a $36 million dollar increase over
Continue reading the full article…