Timing on Preparing Table Updates

Key Benefit Concepts About Us, Actuarial

Can’t prepare until information is known as of fiscal year end (roll-forward blog already that we can use/update? A common question we get from clients is when they can expect to receive their table updates for the year. As some background, “table updates” are tables provided to you in years when a full valuation is not prepared. Basically, the liabilities …

Factors that Impact Differences in Experience Gain/Losses

Key Benefit Concepts Actuarial, Services

If you have ever seen your OPEB liability fluctuate dramatically from one valuation to the next, then it’s likely due to one of the following reasons: 1) changes in your OPEB plan design, 2) changes in the actuary’s assumptions, or 3) differences between expected and actual experience. The first and second are pretty self-explanatory in that they are a byproduct …

What is OPEB?

Key Benefit Concepts Actuarial, OPEB, Video

Other Post-Employment Benefits, or “OPEB” for short, is defined by GASB as any post-employment benefit other than pensions or compensated absences. These types of post-employment benefits are at the complete discretion of the employer including if any OPEB benefits are provided or not, what classifications are offered benefits, and the eligibility requirements in order to receive them upon retirement. OPEBs …

Incurred But Not Reported Reserves (IBNR)

Key Benefit Concepts Actuarial, Services

If you offer a self-insured health or dental plan, an important and essential aspect of the plan is the incurred but not reported reserve (IBNR). Essentially, IBNR is an estimate, generally determined as of the plan year end, of all covered claims that have occurred but have not yet been reported.  For example, say an individual is in a car …

Self-insured health/dental plan attestations – OCI requirements?

Key Benefit Concepts About Us, Actuarial

If your health or dental plan is self-insured, then you know that there are some key differences in comparison to a fully insured plan. For public school districts in Wisconsin that self-insure their sponsored health or dental plans, there is one other emerging requirement. Wisconsin Statute §120.14 and the Wisconsin Department of Public Instruction (DPI) state audit guidelines require that …

Update on Requirements from OCI…

Key Benefit Concepts About Us, Actuarial

Key Benefit Concepts (KBC) provides several unique actuarial services including attestation of self-insured health and dental plan financial soundness and/or adequacy of incurred but not reported (IBNR) reserves. Wisconsin Statute §120.14 state audit guidelines that school district audits should include information concerning the school district’s self-insured health and dental plans. Specifically, a footnote with a date of actuarial certification attesting …

403(b) / TSA – Pros / Cons – Taxable vs. Tax Deferred vs. Nontaxable

Key Benefit Concepts About Us, Actuarial

There are many different benefit vehicles available through employers for their employees depending on the type of entity. One specific benefit vehicle is a 403(b) or Tax-Sheltered Annuity (TSA). According to the Internal Revenue Service, a 403(b) or TSA plan is a retirement plan offered by public schools and certain charities and is similar to a 401(K) plan maintained by …

Health Reimbursement Arrangements (HRA) for Active Employees

Key Benefit Concepts Actuarial, Services

An HRA is similar to an H.S.A. in that its purpose is to allow for tax-free reimbursement of health plan deductible and eligible health care expenses paid by the employee or individual covered under the plan; however, the HRA is very different in many other ways: No specific Health insurance plan design – for active employees, the employer provides the …

Post-Employment Health Reimbursement Arrangements (HRA)

Key Benefit Concepts About Us, Actuarial

Changes implemented through the Affordable Care Act (ACA) limit an employer’s ability to provide an HRA to active employees ONLY in conjunction with the employer’s health insurance plan.  However, an employer is not restricted to providing an HRA for employees once employment is severed. Remember the employer is the only one allowed to design and fund the HRA plan and …

Facts about the Individual’s Control of the H.S.A.

Key Benefit Concepts Actuarial, Services

The individual opens the H.S.A. account and maintains control of the account once opened.  Anyone can fund the H.S.A. account.  Typically, the individual puts funds into their own account and/or the employer may also put funds into the account.  Funds going in are not taxable.  If the individual put funds in during the calendar year, he or she can deduct …