Which of the following is NOT a recommended action when determining an OPEB funding approach?

Offering incentive packages for early separation is not considered a recommended action when determining an OPEB (Other Post-Employment Benefits) funding approach. The primary reason is that while early separation incentives can reduce the current workforce and potentially lower future OPEB liabilities, they can lead to a significant financial impact in the short term. This approach might increase current costs without directly addressing the long-term funding of OPEB liabilities.

When evaluating OPEB funding strategies, best practices focus on sustainable funding mechanisms that manage liabilities effectively over time. For instance, requiring employee contributions can enhance funding levels, while a pay-as-you-go system allows public entities to manage cash flow by paying benefits as they come due. Additionally, avoiding the issuance of OPEB bonds is prudent since such debt can create future financial obligations and interest payments.

In contrast, incentivizing early separations may disrupt workforce stability without providing a viable funding plan, which can complicate the management of post-employment benefits in the long term. It's essential to align funding strategies with comprehensive financial planning to ensure that OPEB liabilities are adequately managed.