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 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 …
Are there certain people in your work life where each call you make to them seems to go directly to voicemail, and then you’re stuck waiting for a call back? This can be extremely frustrating, which is why there’s no need to worry about that with KBC. During office hours, someone is routinely available to answer the phone. Even if …
The impact of COVID-19 led to the cancellation of most in-person conferences in 2020 and many so far in 2021. Key Benefit Concepts (KBC) enjoys being affiliate members of many government employer associations. We look forward to sponsoring, attending, speaking and most of all having a booth at conferences throughout the United States. Why? Because we get an opportunity to …
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 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 …
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, 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 …
Get the Scoop on Post-Employment Table Updates 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 …
