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PROCESS `iO11OA <br /> Part 2 <br /> Describe how the firm will work with the government to determine the proper actuarial cost <br /> method, actuarial valuation method, amortization method and key assumptions to the <br /> valuation based on relevant accounting and actuarial standards. Some key assumptions (not <br /> all of them applicable) to consider as part of this discussion are: <br /> • Turnover <br /> • Retirement Age <br /> • Disability retirement age <br /> • Mortality <br /> • Projected salary increase <br /> • Inflation rate <br /> • Healthcare cost trend data for appropriate region <br /> • Amortization timeframe <br /> • Investment return <br /> • Post retirement benefit changes <br /> • Actuarial assumptions associated with the method (projected unit credit, entry age <br /> normal, etc.) <br /> • Provide an analysis of allowed actuarial and amortization methods with the pros and <br /> cons of each method and recommend the most appropriate or commonly used one or <br /> two methods for this type of study. <br /> • Describe how the firm would assist in the interpretation of the plan and value the <br /> associated costs in situations where there is ambiguity related to the substantive plan. <br /> • Timeline - The firm will identify the major tasks in the valuation engagement and the <br /> suggested timeline for completion. <br /> • Data Requirements - The actuarial firm should list all data requirements, other than <br /> what has been identified in the RFP, that they require to complete the valuation and in <br /> what type of format that data must be provided. <br /> • Support - Provide the support that is required of the County 's staff. <br /> • Sample Report - Include in the Appendix of the firm 's response a copy of a sample <br /> report. <br /> Describe how the firm will work with the government to determine the proper actuarial cost <br /> method, actuarial valuation method, amortization method and key assumptions to the <br /> valuation based on relevant accounting and actuarial standards. <br /> The results of an OPEB actuarial valuation are entered into the employer' s financial statement <br /> and published as such. Technically speaking, all assumptions and methods used in an OPEB <br /> actuarial valuation are the employer' s. All employers presenting a financial statement should <br /> understand that, essentially, they have adopted the assumptions as their own for the purpose of <br /> the financials . Nevertheless, each assumption and method needs to be within the Actuary' s <br /> GlX0 Gabriel Roeder Smith & Company 35 <br />