BRC currently assists a large number of OPEB plan sponsors in determining funding requirements and fulfilling the financial disclosure requirements under GASB 74 and 75. We specialize in OPEB valuations and our actuaries have been performing these valuations since the early 1990s. Our valuation experience and in-depth understanding of GASB 74 and 75 sets us apart from other actuarial service providers. Our OPEB consulting services include:
Actuarial Valuations
GASB 74 and 75 Valuations
An accounting valuation is required to determine the annual OPEB expense and total/net OPEB obligation. These expense and disclosure items are a fundamental component of the financial disclosures of many public sector employers. Our actuaries are thoroughly versed in GASB 74 and 75 and will provide a compliant disclosure report in a user-friendly presentation.
Funding Valuations
In addition to performing accounting valuations, we can assist you in determining the annual funding requirements for your OPEB plan. Our actuaries have extensive experience in calculating required contribution amounts according to specific municipal statues and in developing the actuarially determined contribution referenced in GASB 74 and 75. We provide funding projections and can help you develop a sound funding policy.
Additional Analysis
Our OPEB valuation process includes a detailed analysis of all actuarial gains and/or losses for both funding and accounting valuations. This analysis includes a detailed review of changes in plan liabilities and assets, if applicable. The gain/loss analysis allows us to identify any significant trends and assists us in making recommendations for changes in actuarial assumptions.
Valuation Reports
Our OPEB valuation reports are comprehensive and easily understood. They document all required calculations, include a summary of plan provisions, an outline of the assumptions and methods utilized in the valuation, plan membership statistics and a glossary of valuation related terms.
Experience Studies
At some point, some of the actuarial assumptions used in the valuation will require modification. An experience study compares actual plan experience with predicted experience under the current actuarial valuation assumptions. A typical study will include both economic and non-economic assumptions. Upon completion, we will make recommendations for changes in the actuarial assumptions and quantify the impact of the recommended changes on plan financial disclosures and funding, if applicable. We recommend that a plan sponsor conduct an experience study at least once every five years.
Actuarial Audits
Further bolstering our depth of expertise is our actuarial audit practice. Our actuaries are frequently engaged to review OPEB valuations prepared by other actuarial firms. We conduct ongoing reviews for individual plan sponsors and provide actuarial support for independent auditing firms. Actuarial audits vary in complexity and we are fully equipped to perform either a comprehensive actuarial review or undertake a less extensive examination if necessary. For example, we frequently review and analyze the GASB 74 and 75 entries on employer financial statements and the actuarial assumptions and methods used OPEB actuarial valuations.