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City of Santa Ana March 25, 2010 Page 2 Section 2 — Firm Qualifications and Experience Buck Consultants was founded in 1916 primarily as a consultant to large public retirement systems. From these beginnings, Buck Consultants has come to occupy a dominant position as an actuarial consulting firm in the governmental and not - for - profit arena. In fact, we are one of the few firms with a staff specializing in the public and not - for - profit sectors. We are able to offer public sector clients significant expertise on issues relating to benefits, compensation, and human resource management. Buck Consultants currently provides consulting services to a number of states, municipalities, and quasi - governmental entities. Buck has four California offices located in San Diego, Los Angeles, San Francisco and Orange as well as over 5,000 professionals who serve over 3,000 clients and their employee benefit programs in all 50 states and throughout the world. We believe that the depth and breadth of these local resources will give the District easy access to the technical support it needs. Buck Consultants is a subsidiary of Xerox, a Fortune 500 company with over 130,000 employees worldwide. Buck is licensed to do business in California. Buck has not been party to any lawsuits in the last 10 years concerning issues that would materially impact our ability to provide the requested scope of services. Buck is proud to say that we have never lost a client based on service issues. Given the relatively recent implementation of GASB 43 and 45, most actuarial firms have limited experience with both. However, we are performing GASB 45 valuations along with a Medicare Part D analyses and retiree premium rate subsidy calculations for all of our governmental clients subject to GASB accounting. It is worth noting that in the initial valuation performed pursuant to the current GASB rules, we will develop results under all standard actuarial methods and then review them with you. We will help you as plan sponsor to evaluate the pros and cons of each before you make the final selection. Using a City government as an example, we have developed the liability and annual required contribution (ARC) for its current program. The purpose of the initial analysis was to determine the liability and the difference between the actual cash flow needs and the ARC. In addition, it allowed the City to determine the impact of the current subsidization of retiree rates by active employees. We then modeled the impact of the ARC, the actual cash flow needs, and the liability for a thirty -year time period, assuming no change in the benefit programs. This allowed us to show the additional funding that would be needed if the City chose to fund the ARC each year. buckconsultants-