R.I. towns and cities look beyond pension liabilities to an even bigger problem: OPEBs

Editor’s note: This is the third of a four-part series exploring how well Rhode Island cities and towns are funding municipal pension and benefit plans and the public-policy ramifications.

Leading up to the financial crisis of 2008, cities and towns in Rhode Island and throughout the country enjoyed pre-recession revenue surpluses made available by the bubble-year economies of 2006-07.

Flush with cash, and unaware of the subsequent market crash, municipal leaders were faced with budget options: use the excess money to fund new, short-term projects or pay down old, long-accumulating obligations, such as pension liabilities and other post-employment benefits, known as “OPEBs.” …

Read the original on Providence Business News here.

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