Umaine System Requests More Aid [Corrected 11/07/07] ; Trustees Seek Another $8 Million From the Legislature to Help Start a Trust for Retiree Benefits.

Summary

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The University of Maine board of trustees is looking for an additional $8 million from the Legislature as it takes a first step toward creating a federally mandated trust fund for providing health care benefits to retired employees.

The university system has a total liability of $181 million for health care benefits and other non-pension benefits for former employees. Participants will contribute $59 million, but the system has to set up a trust to cover the remaining liability of $122 million.

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Umaine System Requests More Aid [Corrected 11/07/07] ; Trustees Seek Another $8 Million From the Legislature to Help Start a Trust for Retiree Benefits.

Under the new accounting standards from the Governmental Acting Standards Board, all government agencies must account for future pension obligations and have a trust to cover that liability in place by 2008. The University of Maine System has been using a pay- as-you-go model that does not report the cost of no...

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