GASB OPEB actuarial services for cities
- About GASB OPEB
- Partner selected to provide actuarial services
- Educational sessions on requirements, case study results
- Discounted actuarial services available
______________________________________________________________
About GASB OPEB
The Governmental Accounting Standards Board (GASB) requires public-sector entities to begin accounting for the promise to provide other postemployment benefits (OPEB) over the working life of the employee rather than on a pay-as-you-go basis (as is currently done by many public-sector entities).
Even cities that do not contribute directly toward retiree benefits will likely have some GASB OPEB liability because of a state requirement that early retirees be pooled with active employees for continued health and dental benefits. This pooling creates an "implicit rate subsidy" that under GASB should be calculated and accounted for on city financial statements.
Cities with age-banded rates for their medical plan likely will not have an implicit subsidy or GASB OPEB liability—in general, cities that are fully insured with 50 or fewer employees are issued age-banded rates. However, if the city "blends" the age-banded rates into a single/family rate, then the implicit subsidy likely exists.
Additional information on GASB OPEB:
- "GASB OPEB services for cities" (pdf)
- "New reporting requirements for post-employment benefits" (pdf)
- "What should we do now about GASB and postemployment benefits?"
- GASB web site
Return to top of page
______________________________________________________________
Partner selected to provide actuarial services
The League of Minnesota Cities has partnered with Van Iwaarden Associates to offer actuarial services to help member cities evaluate and calculate their GASB OPEB liability. Member cities selecting Van Iwaarden to conduct their actuarial valuations will receive discounted fees.
- To get a quote for these services, read the section below on discounted actuarial services.
Return to top of page
______________________________________________________________
Educational sessions on requirements, case study results
The League and Van Iwaarden Associates will be conducting several informational sessions around the state to educate cities about the GASB OPEB requirements and the outcome of the case studies.
These educational sessions will be conducted in the spring or fall of 2008. More information will be posted on this site as the dates and locations are determined.
Return to top of page
______________________________________________________________
Discounted actuarial services available
The League is also contracting with Van Iwaarden Associates to provide cities with direct actuarial services at discounted fees.
- Cities with fewer than 100 plan members that have just the implicit rate subsidy will receive an actuarial valuation using the Alternative Measurement Method for $1,500. Cities eligible for this option will receive a certified actuarial report and up to one hour of telephone consultation to review and discuss the report.
Van Iwaarden requires data in advance to complete the valuation. Cities must provide data using the Alternative Measurement Method Worksheet:
—Download the Alternative Measurement Method Worksheet (Excel)
- Larger cities and/or those with more complex retiree benefit arrangements will receive full actuarial services at a discounted rate. For 2008, full-valuation fees for most cities range from $4500 to $15,000, depending on the number of participants and the complexity of benefit arrangements.
Cities should review the Data Request for Full Actuarial Valuation spreadsheet for a listing of items that must be provided to Van Iwaarden Associates.
—Instructions for providing data/completing the worksheet (pdf)
—Download the Data Request for Full Actuarial Valuation (Excel)
For more information on direct actuarial services and/or to receive a quote, contact Sandi Bruns, Van Iwaarden Associates, at sandrab@vaniwaarden.com, toll-free at (888) 596-5960, or (612) 596-5960.
Return to top of page
______________________________________________________________
For more information about GASB OPEB services for cities
Contact Erin Rian, LMC Benefits Manager, at erian@lmc.org, (651) 215-4095,
or (800) 925-1122.
