Laserfiche WebLink
<br /> <br />Finance Department <br /> <br />May 30, 2006 <br /> <br />To: Board of County Commissioners <br /> <br />From: Pamela S. Dubois, Deputy County Manager rtP <br /> <br />Subject: OPEB (Other Post employment Benefits) - Retiree Health Insurance, inclusive of the <br />effects of GASB (General Accounting Standards Board) Statements #43 and 45 <br /> <br />Effective June 30, 2007, the County will be required to report financial activities related to OPEB <br />plans that the county provides to retirees. The objective of the reporting is to recognize OPEB <br />cost (expense) systematically over periods approximating employee's years of service. This will <br />provide relevant information about: (a) actuarial accrued liabilities for promised benefits <br />associated with past service, (b) the annual cost of OPEB, and (c) progress made in funding the <br />plan. <br /> <br />The first step in this process will be to engage in an actuarial plan study. The League of <br />Municipalities and NCACC have engaged an actuarial services at a discounted price to be <br />provided by Cavanaugh MacDonald Consulting if the County so chooses to use this firm. This <br />process was offered by these two agencies for the Special Separation Allowance for Law <br />Enforcement Officers several years back. Cavanaugh MacDonald Consulting has also been <br />retained for the Special Separation Allowance for the calendar years 2006 through 2010. The <br />County plans to take advantage of this price reduction offered for both of these services. <br /> <br />Once the actuarial study is complete, the results will be shared with the Board so that a <br />management plan can be put in place to handle this unfunded liability. This will be important since <br />once the study is completed, the results will have to be reported to the rating agencies anytime <br />we pursue the issuance of debt and the liability will be included on our annual financial <br />statements. I will be back in touch once the results of the study are received. <br /> <br />Attachment: NCLM Information <br /> <br />~ <br /> <br />Finance Department ~..=-.... <br />P.O. Box 707. Concord, North Carolina 28026-0707.704-920-2104. www.cabarruscounty.us ~ I ~ <br />IlOlIIII <br /> <br />....L- 2. <br />