Have You Heard……?

Key Benefit Concepts OPEB, Services

Key Benefit Concepts has had the opportunity to speak at conferences across the country. We have spoken on topics such as post-employment valuations (OPEB 101), post-employment trusts, recordkeeping in the business office, HIPAA, when is a gift a gift and many other topics. If you have heard Key Benefit Concepts speak on a topic you love and would like us …

What are Table Updates?

Key Benefit Concepts OPEB, Services

GASB statements require an actuary to update the tables of your organization’s post-employment valuation in the year between valuations. Table updates are just that – updates to the tables provided in the prior year’s valuation.  That means a new valuation is not completed, but rather the tables illustrating obligations, etc. are updated to include in the organization’s financial reports for …

When You Are Insured Through ETF and Pay them Directly

Key Benefit Concepts Actuarial, OPEB

Even if you don’t offer an OPEB plan to your retirees and they are only allowed to self-pay medical premiums directly to a state plan (e.g., the ETF plan in Wisconsin), there may still be a liability that needs to be valued. It’s similar to a group health plan that’s fully insured, and retirees pay you, the plan sponsor, the …

What Does it Mean to be a Consultant?

Key Benefit Concepts OPEB, Services

Being a consultant implies that you are proficient in your field and are willing and able to guide and assist others in your area of expertise.  Many people call themselves consultants, but may lack the knowledge, experience or ability to guide and assist others in an efficient and effective manner. We take the term ‘consultant’ seriously.  Being an actuarial consultant …

Discount Rate- How its Determined

Key Benefit Concepts Actuarial, OPEB

The determination of the discount rate in your OPEB valuation begins with the following question, “Do you pre-fund your OPEB plan through an irrevocable trust?” If the answer is yes, there is a little more that goes into setting the discount rate. If not, GASB 75 makes it very clear how to go about it. For those who do not …

Discount Rate- It’s Impact

Key Benefit Concepts Actuarial, OPEB

If I were to offer you $1 today or $1 five years from now, which would you choose? I’m sure you’re thinking about taking $1 today, and that’s the correct choice. Reason being that you could take that $1 today and earn interest by investing it for the next 5 years, leaving you with more than the $1 you could …

The Actuarially Determined Contribution (ADC)

Key Benefit Concepts OPEB, Services

An important item to consider when funding your post-employment benefits through a Trust is how much to contribute annually, which can depend on a number of variables.  Perhaps you are simply placing extra funds at the end of the fiscal year into your Trust or maybe you have a set dollar amount budgeted each year to contribute.  Regardless, your actuary …

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 …