Dartmouth leaders are committing to paying off the town’s unfunded liabilities, under a new policy shift that would tackle more than $90 million in retirement-related obligations which are outstanding.

The town’s unfunded liabilities — future obligations which have not yet been funded — includes two sources, both related to retirement: Employee pensions through the Bristol County Retirement Board, which stand at $38 million, and Other Post Employment Benefits (OPEB), which stand at $58 million. OPEB is primarily retiree healthcare.

At the June 3 Select Board meeting, Director of Budget and Finance Greg Barnes said there is a plan in place to fund the town’s pension liability by 2029, barring any unforeseen financial hardships.

Currently, the town is only putting about $375,000 per year towards OPEB — set to go up next year to $450,000 — when in order to fully fund it, the town would need to put $1.9 million towards the balance.

“Obligations are being incurred today for the future,” Barnes said. “Those who incur obligation should have the responsibility to pay for the obligation. If we wait we are basically pushing our liabilities onto a future generation.”

Now, a new funding source will be tapped under a policy change which was approved by the Select Board at its June 3 meeting and the Finance Committee at a prior meeting.

Under the policy change, once the town pays off its pension liability, the money being spent there will be reallocated to paying down the OPEB liability, instead of being transferred back into the town budget to be spent on other projects.

While the plan is moving forward, it was not without controversy. The School Committee had voted against the policy change at its April 29 meeting. Members worried that would leave less money for town fiscal needs.