SC ORBET is a GASB-compliant trust to pre-fund future obligations. The Governmental Accounting Standards Board issued Statement 45 which requires state and local governments to report other post employment benefits similar to the way they report pensions on annual financial statements.
The Trust is a tax-exempt governmental trust under Internal Revenue Code Section 115 and applicable State of South Carolina law and is open to all political subdivisions.
How the Trust works:
To better manage other post employment benefit costs, Trust participants choose a contribution amount into the trust based on the actuarially determined annual required contribution. Each member continues to contract with its current health care provider for retiree health care coverage. The Trust pays the benefits chosen by the employer directly to the employer or provider.
Why participate in SC ORBET:
Each member shares in the Trust's administrative and investment related expenses, lowering the overall costs to each local government. Also, each receive an actuarial valuation that meets the financial reporting needs of GASB.