Key Benefit Concepts: Services and Information
What makes KBC unique in this endeavor is that we are a true consulting firm. KBC is not affiliated with any investment firms, or sale of any investment vehicles or services. Thus, we are truly dedicated to determining what a public entity’s goals are and assisting them in achieving and maintaining a program that meets their needs.
Whether it is an update in state or federal regulations or an opportunity to bargain a change, many government entities have looked at their post-employment benefits wondering where to begin and what to do to modify the benefits in a manner that brings value, encourages employee retention, and is long-term sustainable for the employer. Engaging an actuarial and employee benefit consulting firm to assist in an assessment of current post employment benefit plans, and consideration of options for restructure of the post-employment benefits, brings a balanced perspective to the mission.
Key Benefit Concepts LLC (KBC) has identified the following common objectives to this process:
Create/design a benefit that is:
- Equitable for those close to post-employment
- Fair to current employees with various years of service to the District
- Financially sustainable to the District
- Attractive to recruiting and maintaining employees
These objectives are reviewed with the organization and used as a starting point to establish the specific, explicit goals and objectives.
KBC provides not only actuarial valuations of such post-employment benefits, but also consulting to assist public employers evaluate and understand benefit and eligibility options and the cost impact of changes in the post-employment benefits.
Coupled with highly skilled benefit consultants, KBC has prepared a 4-meeting approach to working with public entities to:
- Identify the issues with current benefits/costs
- Determine the goals and objectives of the plan (or proposed restructured plan)
- Evaluate a myriad of options, benefit vehicles and approaches to meet the determined goals
- Develop restructured benefit options
- Provide the cost and cash flow impact of the proposed options
- Recap the decisions and assistance in moving forward with implementation of the determined new plan
KBC engages in benefit projects when we know we can deliver value. This is the cornerstone of our mission. The value to the government employer in meeting their objectives is:
- Corporate understanding of a unified purpose and goals of the post-employment program
- Valuable insight into issues regarding the current post-employment benefits
- Understanding of the pros and cons of various options as they relate to new hires and existing employees
- Confidence in the development of the new benefit program and its alignment with the goals and objectives of the entity
- Assurance that the employer’s new benefit is financially sustainable
- Appreciation of the employer’s benefit program by employees and understanding of the benefits in relation to preparing for retirement
KBC establishes with the client a specific timetable with expected outcomes of each meeting. The goal is to build upon each meeting, culminating with a proposed restructured program meeting the established goals. All meeting dates are determined and locked in at the start of the project. This creates focus and assures that the job is completed in a timely manner.
Examples of outcomes
Over the years, KBC has assisted many Wisconsin entities in restructuring their post-employment benefits. Here are a few examples:
- Utilizing the assets maintained in a post-employment irrevocable trust, revamp of employee benefit and eligibility to create a program that is fully-funded to-date, and for which the public entity is able to continue funding benefits earned each year in the year earned. Thus, no post-employment benefit valuation is required! All benefits are fully-funded each year. Handbook updates and plan documents created for review by legal counsel.
- Identification of public-school district employee needs/wants and compare to Board of Education’s determined goals and concerns. Including stratified employees by classifications and tiers and assisted in the redesign of benefits that have value to the employee groups based upon various age/years of service, to improve the District’s ability to recruit and retain quality staff while reducing the district’s post-employment obligations by millions of dollars.
- Assist in the design and implementation of a post-employment benefit that engages employees to actively participate in saving for retirement, and understanding the value of the employer contributions. Over time, the employer’s post-employment obligations and outstanding liability are gradually reduced and eliminated while simultaneously funding the new benefits as earned (fully-funded). Language in the plan allows for the employer to adjust the benefit as needed to assure the ability to maintain the program with changes in regulations and revenue.
In some cases, the resulting benefits can be funded over a period of time to create a fully-funded benefit and in other cases, the post-employment benefit remains funded on a pay-as-you-go basis, but in a manner that is sustainable, and yet meaningful, to the employees and retirees.
Each public entity has a different starting point and goals – thus, resulting benefits differ. However, in the end one thing is the same – the employer has determined its goals, its funding, and understands exactly how and why the resulting benefits were implemented!
Key Benefit Concepts LLC
200 West Summit Avenue, Suite 270
Wales, Wisconsin 53183
Phone: (262) 522-6415