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BACKGROUND Actuarial consulting services are needed from time to time to meet the accounting and financial reporting requirements for retiree medical benefit programs offered by the City to its retirees. The accounting rules GASB #43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and GASB #45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, apply to all public employers that offer post employment benefits. The basic premise of the new accounting rules is to measure and report the long-term costs of non-pension retiree benefits, with the idea that these benefits are a form of employee compensation that should be recognized as an expense as the employee earns the benefit, which is the way pension benefits are handled. GASB #45 does not require that the actuarial liability be funded. However, it does require that the total liability be disclosed and reported in the annual financial statements. It also requires that an annual amount be funded that will retire the liability over time, or that a liability be reported for any unpaid portion of the annual required contribution. This contract with Bartel Associates will provide the information for the required annual reporting and accounting for the City's retiree medical program. DISCUSSION Bartel Associates, LLC has provided actuarial consulting services to the City of Pleasanton for over 10 years. Initially, their services were in the form of a review of the annual CaIPERS actuarial valuations for pension rates. However, over the last decade as Pleasanton has begun to accumulate reserves to pre-fund retiree health benefits their consulting services have included the estimate and update of the long term actuarial liability for the retiree medical benefit. More recently this has included updated estimates for plan design changes negotiated through the collective bargaining process with various bargaining groups. The actuarial valuation covered in this scope of work will be the valuation used for determining the Annual Required Contribution (ARC) to the City's irrevocable trust for the 2014/15FY and the 2015/16FY as well as, disclosure information needed for the City's Comprehensive Annual Financial Report (CAFR). Submitted by: Approved by: r/ykt:freijr/ Emily E. Wagner NelsgiA a: Director of Finance City Manager Attachments: 1. Amendment Eight Page 2 of 2