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BACKGROUND <br /> Actuarial consulting services are needed from time to time to meet the accounting and <br /> financial reporting requirements for retiree medical benefit programs offered by the City <br /> to its retirees. The accounting rules GASB #43, Financial Reporting for <br /> Postemployment Benefit Plans Other Than Pension Plans, and GASB #45, Accounting <br /> and Financial Reporting by Employers for Postemployment Benefits Other Than <br /> Pensions, apply to all public employers that offer post employment benefits. The basic <br /> premise of the new accounting rules is to measure and report the long -term costs of <br /> non - pension retiree benefits, with the idea that these benefits are a form of employee <br /> compensation that should be recognized as an expense as the employee earns the <br /> benefit, which is the way pension benefits are handled. GASB #45 does not require that <br /> the actuarial liability be funded. However, it does require that the total liability be <br /> disclosed and reported in the annual financial statements. It also requires that an <br /> annual amount be funded that will retire the liability over time, or that a liability be <br /> reported for any unpaid portion of the annual required contribution. This contract with <br /> Bartel Associates will provide the information for the required annual reporting and <br /> accounting for the City's retiree medical program. <br /> DISCUSSION <br /> Bartel Associates, LLC has provided actuarial consulting services to the City of <br /> Pleasanton for over 10 years. Initially, their services were in the form of a review of the <br /> annual CaIPERS actuarial valuations for pension rates. However, over the last decade <br /> as Pleasanton has begun to accumulate reserves to pre -fund retiree health benefits <br /> their consulting services have included the estimate and update of the long term <br /> actuarial liability for the retiree medical benefit. More recently this has included updated <br /> estimates for plan design changes negotiated through the collective bargaining process <br /> with various bargaining groups. The actuarial valuation covered in this scope of work <br /> will be the valuation used for determining the Annual Required Contribution (ARC) to <br /> the City's irrevocable trust in the 2010/11 FY and disclosure information needed for the <br /> City's Comprehensive Annual Financial Report (CAFR). <br /> Submitted by: Approved by: <br /> Emily E a 9 Wagner Nelson Fialho <br /> Director of Finance City Manager <br /> Attachments: <br /> 1. Amendment Five <br /> 2. Original Agreement <br /> Page 2 of 2 <br />