Employees of the Town may be eligible for certain benefits after their employment with the Town has ended. A pension is the most common type of post-employment benefit available. Other post-employment benefits (OPEB) covers all retiree benefits other than pensions. For eligible Town employees this would include both health and life insurance benefits. These benefits in some cases may also include an eligible spouse or a surviving spouse. Eligibility for retiree benefits are defined in Massachusetts General Laws (MGL) Chapter 32 and 32B.
The Town has established an irrevocable OPEB Trust which is designed to hold the funds needed to cover the future benefits due its retirees. Plan assets are:
Segregated from other Town funds and are restricted in their use
Dedicated to providing plan benefits to retirees and beneficiaries
Legally protected from creditors
Town contributions to the trust are irrevocable
An actuarial valuation of the Town's OPEB liability must be performed every two years.