Summary of Specifications:
On behalf of the City, the City Clerk will accept proposals in response to this Request for Proposals from qualified actuaries to provide actuarial services for the City’s Other Post Employment Benefits (OPEB). The Governmental Accounting Standards Board (GASB) issued Statement No. 45: Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions. OPEB includes post employment healthcare, as well as other forms of post employment benefits, such as life and dental insurance, when provided separately from a pension plan. The Statements establish standards for the measurement, recognition and display of OPEB expenses and related liabilities in the financial reports of the City. The City currently finances its OPEB on a pay-as-you-go basis, and the financial statements do not report the financial effects of OPEB until the benefits are paid. The Statements require the accrual of the expense of the OPEB over the working career of employees rather than on the pay-as-you-go basis. The City is required to have GASB 45 calculations accomplished for October 1, 2012 and seeks an updated actuarial review, and certain subsequent reviews as may be deemed required for compliance with provisions of GASB 45. Services shall be provided for a three-year period beginning April 10, 2013 and ending on April 9, 2016, but applying to the period beginning on October 1, 2012 and ending September 30, 2015, at a fixed rate and with a firm price commitment. The desired completion date for the initial study will be within thirty (30) days of contract award. The actuarial firm will provide the City Clerk with an actuarial-determined valuation of the City’s OPEB, for compliance with GASB 45 of the Governmental Accounting Standards Board, by 4 P.M. on May 10, 2013. At a minimum, this valuation should: • Determine the cost of benefits, • Recognize OPEB expense on the accrual basis of accounting, • Project future benefit payments, • Determine the present value of projected benefit payments, • Provide the actuarial accrued liability for OPEB associated with past service costs, • Use an acceptable actuarial cost allocation method to assign costs to specific accounting periods • Provide information useful in assessing potential demands on the City’s cash flows. • Provide detail of the assumptions, data, and computational methods used. • Include enough detail in actuarial valuation to permit all GASB 45 required audit disclosures to be created. • Provide updated actuarial results applicable to GASB 45 requirements for October 1st in subsequent two (2) fiscal years, (2013 and 2014) by no later than May 9th, 2014 and 2015, respectively. • Be responsive via email (within 2 business days), or USPS mail (within 10 business days) to all GASB 45 related client questions.
Statewide