By Debra DeHaney-Howard
July 16, 2007

Piscataway (NJ) Mayor Brian Wahler, chair of the Conference’s Membership Committee, reported to the panel members June 22 on the progress the organization has made during the past year in recruiting and retaining members. “I’m very pleased to report that we continue to make progress in our recruitment efforts, particularly among cities with populations of 50,000 and above,” Wahler said.

Wahler lauded the committee members for their continued commitment and support of the Conference’s membership campaign, encouraging them to continue their aggressive membership efforts. “Maintaining and significantly expanding the Conference of Mayors membership is a high priority for the committee. Our goal is to have a strong and united voice in Washington,” he said. Wahler concluded his report by telling members to continue to reach out to their neighboring cities in order to inform fellow mayors of the important work of the Conference and what the benefits their city would receive through Conference membership.

Prior to Chairman Wahler’s membership report, committee members also heard from Conference of Mayors’ Platinum Member Nationwide Retirement Solutions Vice President for Strategic Relationships Louie Watson and NW Financial Principal and Founder Dennis Enright on the current regulatory and financial issues regarding post employment benefits.

Speaking on the Post Employment Health Plan (PEHP) program, Watson told participants that the purpose of the PEHP program, which is recognized within the Internal Revenue Code as a 501 (c) (9) Voluntary Employees Beneficiary Association (VEBA), is to pre-fund future health care expenses for employees — both former and retiring — family members with tax-free dollars. He noted that PEHP programs are available for both collectively and non-collectively bargained employee groups. Watson outlined a number of PEHP investment options, noting five asset allocation funds and 15 stand-alone funds.

Dennis Enright briefed committee members on the Governmental Accounting Standards Board (GASB) recently issued statement number 45 and Other Post Employment Benefits (OPEB). He told members that GASB 45 requires all governmental entities, which includes municipalities, to establish the amount of the obligation and record it on the balance sheet. He said, “Rating agencies will be expecting this information in the future and may impact bond rating if not provided.” Enright outlined four areas that need to be considered in order to meet the OPEB challenge. They include: quantification, strategic planning, funding, and investment. In concluding his presentation, Enright noted that GASB 45 is an issue that affects all cities and that it requires cities to develop a plan on how OPEB will be funded.