Shelby County Schools, like every school district nationwide, is trying to determine ways to reduce Other Post Employee Benefits (OPEB) liability. OPEB are benefits (other than pensions) that U.S. state and local governments provide retired employees and typically involve health care benefits, but may include life insurance, disability, legal and other services. New OPEB standards require government agencies to have greater reporting and accountability around their financial liability.
Currently, SCS OPEB liability (or cost) is $1.5 billion and growing, equivalent to an annual payment of $124 million if reductions are not made. A debt of that magnitude would pose major challenges in fulfilling our mission of effectively educating our children and serving our employees.
Historically, our District has funded retiree benefits, but the growing OPEB liability prevents us from continuing to do so. Because OPEB primarily consists of retirement and insurance benefits, this is the only area in which reductions can be made. However, we are proactively addressing the issue and searching for alternative retirement solutions for you, our employees.
It is our hope to provide the School Board with the most viable options for our employees, while ensuring that you have adequate information to prepare for benefits planning to best suit your needs.
Click here to view the OPEB Fact Sheet for proposal details.
Click here to view a comparison of District options and the state's plan.
In the event that healthcare benefits are eliminated, we want to know which option you prefer.Click here to share your input.