[OEBBBUSMAN] Note: Final reminder for GASB 45 reporting services under Milliman

[Business Managers-OEBB]

Good Afternoon, 

Please see the following notice below from Milliman regarding the last
e-mail reminder for GASB 45 reporting services for FYE June 30, 2010 and
June 30, 2011. We hope you find this service helpful and please feel
free to call or e-mail myself or Milliman with any questions you might
have:  GASB45OEBBMembers at milliman.com or call 503.227.0634.

 

Thank you, 

Ali Hassoun 
OEBB Financial Coordinator 
503-378-4741 
Ali.hassoun at das.state.or.us 


If you are not the person responsible for your entity's financial
reporting, we encourage you to share this message with your finance
officials. 

>>>>>>>>>>>>>>>>>>>>>>>> 

This message discusses Milliman's October 1, 2009 GASB 45 valuation
reports for OEBB members, covering financial reporting for FYE June 30,
2010 and June 30, 2011.  This will be the last reminder e-mail on this
subject.  Your response by August 13, 2010 is recommended.

Enrollment 

Complete instructions for GASB 45 services enrollment can be found at
the following link: 
http://www.oregon.gov/DAS/OEBB/GASBoebb.shtml
<http://www.oregon.gov/DAS/OEBB/GASBoebb.shtml>  

Both new and returning clients may use this web link. 

If you already enrolled in the 2009 valuation process earlier this year,
no action is necessary at this time.  If you are not certain as to your
entity's current enrollment status, please contact Milliman.

Reduced Valuation Prices for 2009 

Prices for the 2009 valuation reports will be lower.  Reasons for the
lower prices include the quality of data and information received from
Employers for the 2008 valuations, as well as the number of
participating Employers.  Also, having completed 2008 valuations for
many Employers, the second go-around should require less time and setup.


We recommend you use the current online fee estimator to see the effect
of the 2009 price schedule on your Employer's estimated valuation price.


The price per member will decrease by 10%: 
>  $13.50 per member between 100 and 350 members (was $15.00 for 2008) 
>  $2.70 per member over 350 members (was $3.00 for 2008) 

A further reduction of 5% to total GASB 45 fees will apply for entities
whose valuations only cover GASB 45 implicit subsidies. 

We estimate that these new prices will represent 5% to 11% reductions in
many Employers' GASB 45 valuation prices compared with the 2008
valuations. 

The "flat fee" base price for valuations will remain at $3,300.  The
$500 per arrangement fee is also unchanged.  Time and expense spent on
items outside the scope of the basic GASB 45 valuation price will
continue to be billed at time and expense. 

Prices for advisory recommendation letters remain at $200 - $400.
Employers who have received an advisory recommendation letter in the
past generally should not need to get a new letter.  However, in the
rare instance where an Employer has implemented a new retiree stipend or
medical benefit, a new recommendation letter would likely be
appropriate. 

The reductions to the valuation prices described above are voluntary on
Milliman's part.  The terms of the Actuarial Services Agreements between
Milliman and our clients remain in effect.  Future years' valuation
prices may be adjusted up or down, not to exceed the amounts specified
in those Actuarial Services Agreements. 

Newly Enrolling Entities

New entities are welcome to enter this project in the October 1, 2009
actuarial valuation cycle.  Entities which have never had a valuation
previously, or who have used a different provider (including OSBA
valuations), should use the New Clients instructions on the OEBB web
site whose link is shown above.

Some transition work will be needed to get new clients "up to speed" on
the valuations and reporting process.  Milliman will fit this transition
work into its basic GASB 45 valuation price (no additional charges),
provided that the client and its auditors provide all needed information
on a timely basis and agree to Milliman's transition proposals.  If the
client or its auditors want additional transition services, Milliman can
provide those services on a time and expense basis. 

2009 Valuation Report Contents 

The 2009 valuation reports will look similar to the 2008 valuation
reports.  A few exhibits will be added, removed, or revised as can be
seen in the sample reports on OEBB's website (see link above). 

The disclosures in the 2009 report will be projected for fiscal years
ending June 30, 2010 and June 30, 2011.  The two years of projected
results reflect that these are generally biennial valuations (i.e. the
next valuation date is scheduled to be October 1, 2011).  The
projections will be based upon the final accounting decisions which your
Employer made for the June 30, 2009 disclosure.   

Timeline

Entities should to enroll by August 13, 2010 in order to avoid any
additional time and expense charges due to late entry.  Enrollment at
later dates may be accepted through approximately October 31, 2010. 

Advisory recommendation letters for new entities will be send by
September, assuming timely receipt of all requested information.
Valuation reports will be delivered in Fall 2010.

Employers which have previously received a valuation from Milliman, or
who are penciled in for an initial valuation in 2009, will receive
additional communications from Milliman. 

Contact Information 

Please write to GASB45OEBBMembers at milliman.com or call 503.227.0634 if
you have any questions regarding this project. 

Thanks as always for your participation.  We look forward to serving
you. 

Will Clark-Shim 

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


Milliman Contact Information 
111 SW Fifth Avenue, Suite 3700 
Portland, OR   97204 
Tel  503.227.0634   Fax  503.227.7956 

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This communication is intended solely for the addressee and is
confidential. If you are not the intended recipient, any disclosure, 
copying, distribution or any action taken or omitted to be taken in
reliance on it, is prohibited and may be unlawful. Unless indicated
to the contrary: it does not constitute professional advice or 
opinions upon which reliance may be made by the addressee or any
other party, and it should be considered to be a work in progress.
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