HomeMy WebLinkAboutAgenda - 06-24-2008-4hORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 24, 2008
Action Agenda
Item No.
SUBJECT: Actuarial Report for Other Post Employment Benefits
DEPARTMENT: Finance/ Human Resources PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
INFORMATION CONTACT:
Gary Humphreys, -245-2453
PURPOSE: To agree to participate in the North Carolina Association of County
Commissioners contract with Cavanaugh McDonald for preparation of the actuarial report for the
County's Other Post Employment Benefits (OPEB) liability for the benefit year ended December
31, 2007.
BACKGROUND: An Actuarial Report is required to be prepared every two years regarding the
County's Other Post Employment Benefits (OPEB) liability. Under the Governmental Accounting
Standards Board (GASB) Pronouncement 45, the County is required to report the liability of any
retiree benefits it provides in its Comprehensive Annual Financial Report (CAFR). The County
provides health insurance benefits to its retirees. Based on the previous valuation completed as
of December 31, 2005, the County's OPEB liability was $84.5 million which is what will be
reported in the County's FY 2007-08 CAFR. The North Carolina Association of County
Commissioners has arranged a contract with the firm of Cavanaugh McDonald for the
preparation of this report for counties. The cost is based on a sliding scale related to the number
of plan participants. It is estimated that the cost will not exceed $5,600.
FINANCIAL IMPACT: The financial impact is $5,600. Funds are budgeted in the FY2008-09
budget for the preparation of this report.
RECOMMENDATION(S): The Manager recommends that the Board approve participating in
the North Carolina Association of County Commissioners' contract for the preparation of
County's actuarial report for its OPEB liability and execution of the participation agreement by
the County Manager.