Safety, Security, Privacy and Confidentiality

Key Benefit Concepts Actuarial, Services

These are more than words; these are important aspects of KBC’s services.  Our employees are thoroughly trained in HIPAA privacy compliance.  We use Business Associate Agreements, a secured site for uploading data and cybersecurity features in our emails, computers and servers.  We work diligently to protect all data in our care and to assure that only those intended to have …

Roll-forward Information needed to Complete Valuations/ Table Updates

Key Benefit Concepts Actuarial, OPEB

Key Benefit Concepts prepares valuations in two ways – as a roll back or a roll forward.  Roll back refers to a valuation with a measurement date that is 12 months prior to the reporting date, whereas roll forward refers to a valuation with a measurement date the same as the reporting date.  While preparing a valuation as a roll …

The Longevity of Assumptions Used in an OPEB Valuation

Key Benefit Concepts Actuarial, OPEB

One thing that most, if not all, assumptions included in your valuation have in common is that they are long-term assumptions that span over the entire duration of the valuation. Oftentimes, this is 30+ years. While some of your actual experience, such as salary increases or medical premium increases, for the subsequent year may not match the assumptions, it is …

Funding your Post-Employment Benefits

Key Benefit Concepts Actuarial, OPEB, Services

The statements issued by the Governmental Accounting Standards Board (GASB) related to post-employment benefits do not require entities who provide Pension or Other Post-Employment Benefits (OPEB) to fund such benefits via an irrevocable trust.  However, if you currently do or are considering setting up a Trust to begin funding your post-employment benefits, there are a few important things one should …

Census Information as of the Valuation Date

Key Benefit Concepts Actuarial, OPEB

Census data can often be requested and provided after the valuation date of the report as actuarial valuations are performed throughout the year. Since clients keep accurate records of current retirees receiving post-employment benefits which are generally updated frequently, some retirees may be left off the information provided as their benefits have ended at the time the census data is …

Determining Your Annual Implicit Rate Subsidy Amount

Key Benefit Concepts Actuarial, OPEB

Now that you have a bit more background on the concept of Implicit Rate Subsidy, how should this amount be determined annually related to your current retiree population?  Since the amount isn’t actually paid to retirees and rather an implicit cost, it can often be missed in the OPEB payments being reported on the financial statements. There are a few …

Implicit Rate Subsidy- Determining an Assumption

Key Benefit Concepts Actuarial, OPEB

Implicit Rate Subsidy – Determining an Assumption Since Implicit Rate Subsidy (IRS) from continued medical coverage is considered an OPEB that requires valuation (per GASB), only offering the the ability to self-pay to continue medical coverage in retirement would technically be considered an OPEB even though the individual is paying the full premiums required. In these cases, the only OPEB …

I Need a New Valuation- Where do I Begin?

Key Benefit Concepts Actuarial, OPEB, Services

If you are looking for a proposal for a post-employment valuation, you have come to the right place! When it comes time to obtain a post-employment valuation proposal, the process can sometimes become overwhelming. However, Key Benefit Concepts has a process that will help ease “the pain” of the process in 3 easy steps for current clients and 4 easy …

Implicit Rate Subsidy – What is it?

Key Benefit Concepts Actuarial

Implicit Rate Subsidy, or “IRS” for short, is the difference between individuals’ actual incurred costs for medical coverage (i.e., incurred medical claims paid by the insurer, in the case of a fully-insured health plan) and the individuals’ total premiums charged for such coverage. In essence, premium rates are determined for a group medical plan based on the total expected medical …