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Bickmore <br />Attachment C - Sample Report <br />September 28, 2015 <br />Name <br />Title <br />Client <br />Address <br />Re: July 1, 2015 Actuarial Report on GASB 45 Retiree Benefit Valuation <br />Dear Name: <br />We are pleased to enclose our report providing the results of the July 1, 2015 actuarial <br />valuation of other post -employment benefit (OPER) liabilities for the City of " "(the City). The <br />report's text describes our analysis and assumptions in detail. <br />The primary purposes of the report are to develop the value of future OPER expected to be <br />provided by the City, and the current OPEB liability and the annual OPEB expense to be <br />reported in the City's financial statements for the fiscal years ending June 30, 2016 and <br />June 30, 2017. The report is required to be submitted to the California Employers' Retiree <br />Benefit Trust (CERBT) to satisfy filing requirements for the trust. <br />This valuation was prepared with the understanding that: <br />➢ The City will continue to follow its previously established policy of prefunding OPEB <br />liabilities by contributing 100% of the ARC or more each year. <br />➢ The City will continue to invest in CERBT Asset Allocation Strategy 1. The 7.28% <br />discount rate used in this valuation is slightly lower than the 7.5% discount used in the <br />prior valuation. <br />A There have been no changes to benefits since the 2013 valuation was prepared, other <br />than the temporary suspension of flex account contributions for certain retirees. We <br />encourage the City to review our description of the benefits provided to retirees <br />(described in Table 3A) to be comfortable that we have summarized them correctly. <br />This report introduces an "implicit subsidy" liability, which was not previously required to be <br />valued by the City under GASB 45. Discussion of this change is included in the report. <br />We appreciate the opportunity to work on this analysis and acknowledge the efforts of the <br />City's staff, who provided valuable information and assistance to enable us to perform this <br />valuation. Please let us know if we can be of further assistance. <br />Sincerely, <br />Catherine L. MacLeod, FSA, FCA, EA, MAAA <br />Director, Health and Benefit Actuarial Service <br />Enclosure <br />5200 SW Macadam Ave, Suite 310, Portland, OR 97239 • 800.541.4591 - f. 855.242.8919 • ony Wckmore.net <br />