Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Lisa Okada, Deputy Director of Human Resources
Subject: Agreement with Milliman Inc. for Actuarial Services
RECOMMENDATION:
title
Adopt a resolution authorizing an amendment with Milliman Inc. for Actuarial Services, extending the term of the agreement through December 31, 2022, and increasing the amount by $300,000 in an amount not to exceed $500,000.
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BACKGROUND:
The County has contracted with Milliman, Inc. to provide actuarial services associated with the County’s liability for retiree health and other post-employment benefits (OPEB) to comply with Governmental Accounting Standards Board (GASB) standards.
Per GASB 74 and 75, the County must conduct annual actuarial valuations of the County’s retiree health liability. This includes a calculation of the County’s unfunded actuarial accrued liability which is the estimated long-term liability to provide retiree health coverage for current retirees as well as for current employees when they retire, and the County’s annual determined contribution (ADC), or the amount of funds needed to contribute on an annual basis to cover the costs of retiree health coverage for current and future retirees.
DISCUSSION:
Milliman completed the 2021 annual actuarial valuation and provided an actuarial analysis of a potential retiree health change; however, due to ongoing negotiations with labor groups and retiree health design changes being an ongoing topic, additional actuarial analysis for proposed scenarios continues to be requested from Milliman. Given Milliman’s knowledge and expertise around the County’s complex retiree health benefits and its role in supporting the County’s current union negotiation process, there is a strong need to continue Milliman’s actuarial services for an additional year and increase the contract amount.
County Counsel has reviewed and approved the Agreement as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
PERFORMANCE MEASURE:
|
|
2020 Actual |
2021 Actual |
2022 Projected |
|
Actuarial valuations comply with GASB requirements |
100% |
100% |
100% |
FISCAL IMPACT:
There is an increase of $300,000 associated with this agreement for a total obligation of $500,000, which is covered by non-departmental services.