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Proposal to Provide Actuarial Valuation of OPEB Liabilities <br />For the City of Santa Ana <br />April 17, 2014 <br />1. Detailed project Approach <br />General Background: The City is seeking professional services for the preparation of <br />updated actuarial valuation of the City's postemployment healthcare costs. For purposes of <br />this Proposal, we have assumed the valuation will be as of June 30, 2014, with results <br />developed for the City's fiscal years ending June 30, 2014 and June 30, 2015. <br />Process Overview: Our approach to providing services to the City will be for the <br />consultant to collect and review preliminary information with appropriate City <br />representatives to obtain their specific directions and needs regarding the upcoming <br />valuation <br />,_including any issues relating to prior valuations that the City would like to bring to <br />our attention to address or resolve. At this time, a tentative schedule will be developed <br />concerning: <br />(1) Review of actuarial assumptions and the recommended actuarial funding method; <br />(2) Data preparation and delivery for the annual valuation; <br />(3) A telephonic meeting or meetings to discuss preliminary results; <br />(4) Delivery of the final report; and <br />(5) Presentation by the lead consultant of the results contained in the final report either <br />by telephone or in person to the appropriate City personnel, Finance Committee <br />and /or City Council, as desired. <br />Our intent is to make senior consultants and analysts readily available to the City. We are <br />also available by telephone or email at any time. <br />Required information includes census data on covered active employees, retirees and their <br />dependents, and plan documents, MOUs or bargaining agreements, resolutions or <br />employee communications detailing the substantive plan provided by the City. We will also <br />request copies of all PEMHCA resolutions executed and on file with CalPERS, OPEB <br />information reported in the City's financial statements (already received) and confirmation of <br />actual contributions made each year to pay retiree benefits. A sample of our Data Request <br />Part I and Data Request Part II have been attached as Appendix A and B respectively. <br />➢ Comment: Where an agency participates in both the CaIPERS retirement and <br />CalPERS healthcare programs, we find that it often saves significant agency staff <br />time to request a CalPERS OPEB data extract reports for both its active and retired <br />employees. There is no charge from CalPERS for the extracts. When this is provided <br />to us, we are able to send an abridged employee data request (Part II) for the <br />remaining information. The process for requesting this data extract can be found on <br />the CalPERS website at this link: <br />http:// www .calpers.ca.gov /index.isp ?bc= /employer /retiree- ben- trust/data- extract xml. <br />If interested, the City may want to initiate the extract process immediately, in order to <br />shorten any waiting time for receiving the data. <br />Report Contents: Bickmore is prepared to provide all services specifically requested by <br />the City as described in the RFP. <br />In particular, our reports will include calculation of projected benefits expected to be paid, <br />the development of the GASB 45 annual required contribution (ARC), annual OPEB <br />expense, Net OPEB Obligation (NOO), and other information required for disclosure under <br />Bjckmore <br />