GASB standards require that governments report other postemployment benefits offered to employees, which in some cases will be huge. To investigate the extent of the problem, examine the required supplementary information (RSI) of the most recent CAFRs for the City of Boston (www.cityofboston.gov/auditing/) and the City of New York (www.comptroller.nyc.gov/reports).
a. Examine the Schedules of Funding Progress in the RSI. For the most recent year, how large is the unfunded actuarial accrued liability (UAAL) for Boston’s OPEB-City and OPEB-Plan? What are the funded ratio and the UAAL as a percentage of covered payroll? (Hint: The funded ratio is calculated as assets held for OPEB liabilities divided by the UAAL.)
b. Examine the Schedule of Funding Progress for OPEB within the RSI of New York City’s CAFR. For the most recent year, how large is the UAAL? What are the funded ratio and the UAAL as a percentage of covered payroll?
c. Compare the funded status of Boston’s and New York City’s OPEB obligations.