CHICAGO - The triple-A rated Metropolitan Water Reclamation District of Greater Chicago established an irrevocable trust late last year under a plan to partially pre-fund its $443 million other post-employment benefit unfunded liability, a move that puts the issuer out in front of its fellow Chicago-area governments.

The district moved early to address the new rules from the Governmental Accounting Standards Board that require local and state governments to report their unfunded actuarial accrued liabilities for health care and non-pension other post-employment benefits. Historically, most governments have accounted for OPEBs on a pay-as-you-go basis, reporting only the cost due in that particular year.

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