How to Explain the Pension and OPEB Crisis
April 9, 2018 – Charlie Francis
The pension and OPEB crisis isn’t new -- but it might be new to you if you’re just coming into a finance director role, joining a finance staff, or are a stakeholder who hasn’t dealt with it before. It’s a complex issue and not always that easy to explain to those in non-finance roles.
Basically, a post-recession economy, increasing numbers of retiring Baby Boomers, and reexamined actuarial assumptions have placed governments in a challenging position where the money promised for pensions and OPEB is more than what will be available. Figuring out how to finance pensions and OPEB has many governments scavenging to find the money to keep these promises.
This crisis impacts every local and state government and must be strategically addressed. The good news is that while it may take some time to fully solve the crisis; governments can prevent further damage by taking key actions today. But explaining how we got into this mess, and what the most viable options are for addressing it can be tricky. Staff, council members, citizens, and the media need it explained in non-technical terms.
As a former municipality finance director, I understand the kind of chronic headaches this creates. I also know that while there’s no magic solution to the crisis, there are strategies that can address it and even get you into the black for the next generation of residents. Getting people on board with the strategy that will work best for your unique situation is essential.
If you’re looking for a non-technical way to explain the complex technical data of the pension and OPEB crisis to non-finance folks, I’ve recently held a webinar to help you do just that.
See it here on demand:
- How the pension and OPEB crisis came about
- An overview of the options available to governments today
- Strategies that can address the crisis in your government
Watch the webinar and then if you’d like a deeper dive, check out the ebook, Budgeting for the Pension and OPEB Crisis -- it covers the same topics in greater detail. It’s a great asset to use to bring those without a finance background up to speed on the issue...and also helpful for journalists and citizen engagement discussions.
The pension and OPEB crisis is complex -- we hope you find these tools useful in your discussions.
View webinar: 4 Strategies to Address the Pension and OPEB Crisis
Download the Ebook: Budgeting for the Pension and OPEB Crisis
Category: Government Finance