SFUSD's OPEB Liability Has Shrunk But Is Still Largely Unfunded

San Francisco Unified's liability for Other Post-Employment Benefits (OPEB) arises because it has promised lifetime medical benefits to retirees. The unfunded portion will have to be paid out of the General Fund in future years. The liability has shrunk since 2022 because interest rates rose, thereby reducing the present value of the future payments owed.