[OEBBBUSMAN] OEBB Announcement - Continuation of GASB 45 Services for FYE 2011 and 2012

Wed Jun 1 11:06:53 PDT 2011

Good morning,

OEBB is pleased to announce the continuation of GASB 45 services offered
through the agreement between City County Insurance Services and
Milliman, Inc. for FYE 2011 and 2012. Please see the following message
below from Milliman outlining the GASB 45 valuation process and
reporting services offered. Please remember that OEBB has introduced
these services to school districts as only an option when pursuing their
GASB reporting needs. Districts are free to pursue their own vendor for
these services and are in no way obligated to sign up with Milliman.
OEBB's purpose is only to provide the option of a value-added service by
leveraging the size of the OEBB group with the intent of reducing the
cost and administrative burden placed on school districts as a result of
the GASB 45 requirements. 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. Yours very truly,

Ali Hassoun - Financial Coordinator

Oregon Educators Benefit Board

1225 Ferry St NE

Salem, OR 97301-4281

Ph: 503-378-4741

Fax: 503-378-5832

E-mail: Ali.hassoun at state.or.us <mailto:Ali.hassoun at state.or.us>  

________________________________

Milliman, Inc. - Correspondence on GASB 45 Services

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, 2010 GASB 45 valuation
reports for OEBB members, covering financial reporting for fiscal years
ending June 30, 2011 and June 30, 2012.

Enrollment

Complete instructions for GASB 45 services enrollment can be found on
the following OEBB web page:
http://oregon.gov/OHA/OEBB/GASBoebb.shtml
<http://oregon.gov/OHA/OEBB/GASBoebb.shtml> 

Both new and returning clients may use this web page to enroll in
Milliman's services.

Who may need an October 1, 2010 Valuation?

Ongoing valuation clients of Milliman will receive an e-mail from
GASB45OEBBMembers at milliman.com <mailto:GASB45OEBBMembers at milliman.com>
describing their specific situation and advising of action, if any, to
be taken for the 2010 valuation process.  If you expect to receive an
e-mail from us and you do not, please do not hesitate to contact us.

Some Districts have received an advisory recommendation letter from
Milliman in the past, and have not received any valuations as a result
of the advisory recommendation.  Those Districts may continue to rely
upon the initial advisory recommendation letter so long as the facts
stated in that letter remain materially unchanged.  In the rare instance
where an Employer has implemented a new retiree stipend or medical
benefit, a new recommendation letter may be appropriate; please contact
our office if this is the case.

Entities who have not worked with Milliman on this GASB 45 project in
prior years are encouraged to write us at GASB45OEBBMembers at milliman.com
<mailto:GASB45OEBBMembers at milliman.com.&nbsp> .  Please let us know if
you have ever received a GASB 45 valuation previously, and any other
brief background information you feel is appropriate.

Newly Enrolled Entities

New entities are welcome to enter this project in the October 1, 2010
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.

Valuation Prices for October 1, 2010 Valuations

Valuation prices are governed under the Actuarial Services Agreement
<http://oregon.gov/OHA/OEBB/docs/GASB/MillimanOEBBEntityAgreement.pdf>
found on the OEBB web page. 

The Actuarial Services Agreement specifies cost of living adjustments.
Milliman has voluntarily waived those adjustments for the 2010 valuation
cycle.

An "early bird" reduction of 3% of fees will apply to entities which
enroll in services by June 24, 2011.  (If for budgeting reasons you wish
to pay in early July 2012, please let us know.)

We recommend you use the online fee estimator
<http://oregon.gov/OHA/OEBB/docs/GASB/2011/PriceEst10WEB.xls>  to
determine the cost of the 2010 valuation report. 

The reductions to the valuation prices described in the Actuarial
Services Agreement 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.

2010 Valuation Report Contents

A sample 2010 valuation report can be found on OEBB's GASB 45 web page
(see link above).

The disclosures in the 2010 report will be projected for fiscal years
ending June 30, 2011 and  June 30, 2012.  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, 2012).  The
projections will be based upon the final accounting decisions which your
Employer made for the June 30, 2010 disclosure.  

Timing of Reports

Milliman intends to prepare the 2010 valuation reports in two batches.  

The first batch is for Districts who enroll for GASB 45 services on or
before June 24, 2011.  Barring unforeseen challenges, the final reports
for this batch should be delivered by approximately August 15, 2011.

The second batch will be delivered in Fall 2011.  Employers may contact
Milliman at any time to start work on this batch.  We are aware of the
December 31 deadline for filing CAFRs, and we should be able to prepare
a timely report for any entity enrolling in services by October 31,
2011.

Contact Information

Please write to GASB45OEBBMembers at milliman.com
<mailto: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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