The North Andover Board of Selectmen, based on a recommendation of the Town Manager, created the OPEB Committee in 2017. OPEB is the acronym for Other Post-Employment Benefits. OPEB is limited to current and future employees who receive or will receive retiree health insurance since the cost of life, vision, and dental insurance is fully funded by the employee/retiree with no Town subsidy.
Other Post-Employment Benefits (OPEB) represents the current and future obligations of the Town of North Andover’s post-employment health insurance benefits. In simple terms, the OPEB Liability is a function of the Town’s cost of retiree health insurance policies and the number of current and future retired employees who receive such coverage. The Committee’s goal was to assess methods for reducing and funding the Town’s OPEB Liability. For the purpose of this report, the term OPEB Liability is synonymous with Net OPEB Liability.