2007-232 - Laserfiche WebLink

Home Browse Search

iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliillillillillilillillilillillillilI PROCESS " Part 1 Step 3 — Collect Benefit Plan Data Information on the Benefit Plans , loss ratios , renewal reports , experience-rating, worksheets, rate charts , etc . , will be required from the respective insurance companies in order to develop the initial per capita cost for the benefit types . Step 4 — Develop Initial Per Capita Costs Each relevant benefit type needs an initial per capita cost for the group. This is the baseline starting point for the project, and requires short-term health actuarial expertise. We call it "short-term" , because the initial per capita costs for each benefit type are the total underlying costs (not necessarily the premium) expected for the year following the valuation date for all employees and retirees for the respective benefit types . The initial composite per capita costs then are converted to a whole table of age-sex-specific initial per capita costs for each benefit type (including before and after age 65 ) . Step 5 — Calculate all Projected Benefits and Present Values The future years ' expected costs for all currently covered retirees and dependents is projected based on select and ultimate healthcare trend assumptions for each benefit type . We will set up our long-term actuarial modeling system based upon the Summary of Substantive Plan Provisions . Part of this step is recognition of how the Florida Retirement System (FRS) plays such an integral part in the OPEB obligation of the Employer. Naturally, we will use all the retirement eligibility requirements of FRS for normal, early, duty and non-duty disability and death, as applicable. We require the Employer to collect the service credits from an FRS download because that determines when each employee will become eligible to retire (recognizing reciprocal service with other FRS employers) . Initially, we use all of the demographic actuarial assumptions (such as turnover, retirement, disability and mortality rates ) used by FRS because it is not proper to simply pull such rate tables off the shelf when FRS performs actuarial experience studies to set the rate tables based on actual State experience. These three FRS connections should be considered minimum requirements for a proper actuarial valuation of the Employer' s OPEB costs and liabilities . GRS is on retainer by the State of Florida Auditor' s Department (and OPPAGA) to perform actuarial audits of the FRS actuarial work. This has put GRS into a unique position of understanding all the nuances of FRS (definitions , benefits provisions and retirement eligibilities by classification codes, demographic actuarial assumptions , etc .) In the end, the assumptions and methods employed are the Employer' s assumptions and methods . They are to be adopted by the Employer because they are the basis for entries in the Employer' s financial statements . We will advise the Employer' s Staff concerning the Gild Gabriel Roeder Smith & Company 31