Upper St. Clair School Board accepts GASB 45 Report
The Upper St. Clair School Board voted 8-0 to accept the GASB 45 Actuarial Valuation Report during the Aug. 17 regular meeting. Board member Lou Oliverio was absent.
GASB 45 is an accounting provision to measure and report the liabilities associated with post-employment benefits (OPEB) other than pensions, and is conducted every other year. Prior to accepting the report, the board heard from Colleen Deer of Mockenhaupt Benefits Group, who reviewed the key changes since the last report.
Comparing changes impacting costs from 2012 to 2014, Deer listed a number of factors, including reduction of assumed short term medical trend rates, lower costs for new hires who will be eligible to retire later because of PSERS changes, lower than expected medical premiums in 2014 and 2015, changed election ratios for PPO versus HMO, no change in dental and vision costs, and more covered participants.
Deer said the annual required contribution for 2014 and 2015 is $956,000, compared to $890,000 for 2012 and 2013. There will be new GASB requirements as of July 1, 2017, and under the new guidelines, the unfunded liability will be reflected on the balance sheet. Such unfunded liability as of July 1, 2014, was $9.5 million.
Board members had questions about establishing a trust versus the current pay as you go plan for OPEB. Deer said there were advantages and disadvantages to both methods and that she could provide information to help guide the board as they investigate future funding requirements.
At the same meeting, the board commended the 2014 USC High School Girls Volleyball team, which was awarded the American Volleyball Coaches Association Team Academic Award. The award honors collegiate and high school volleyball teams that displayed excellence in the classroom during the school year by maintaining at least a 3.30 cumulative team GPA on a 4.0 scale, or a 4.10 cumulative team GPA on a 5.0 scale.
In other business, USC Superintendent of Schools Dr. Patrick O’Toole reported on the district’s summer academies. The STEAM Academy had 50 students in grade nine through 12 participate, while the Leadership Academies had 396 participants from the elementary level through high school.