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Typical Approach and Information Needed
for OPEB Calculations

Gather Information

You would need to supply us with the following information:

• Census information for active and inactive participants including:
  – Type of participant
  – Birth date
  – Hire date
  – Gender
  – Medical plan
  – Group code
  – Employee number
  – Salary information, etc., as needed

• Plan documents that describe the promise to active and retired employees
   
• Other experience information, including:
  – Turnover
  – Medical claims by age (if applicable)
  – Retirement age
  – Investment return
  – Etc.

Finally, it’s important that we have a meeting or conference call with you to discuss the history and vision for the plans, to set actuarial assumptions, and to delineate the report requirements.

Set Actuarial Assumptions

Based upon historical experience and best estimates as to future experience, we need to set the following actuarial assumptions:

– Discount rate (as required by FASB or GASB)
– Turnover rates (may differ by group)
– Retirement rates (may differ by group)
– Mortality rates
– Employer-provided retiree medical subsidy (if applicable)
– Health-care costs trend rate for employer subsidy (if applicable)
– Other assumptions as needed to properly model your plan

Perform Calculations and Write Report

Present Report for Discussion

Revise Report to Meet Your Needs