Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Kim Pearson, Benefits Manager
Subject: Agreement with Milliman to Serve as the Actuary for the County's OPEB Plan
RECOMMENDATION:
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Adopt a resolution authorizing a three-year agreement with Milliman to serve as the actuary for the County's Other Post-Employment Benefits (OPEB) plan for the period from April 1, 2025, to March 31, 2028, with one two-year option to extend through March 31, 2030, in an amount not to exceed an aggregate total of $750,000.
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BACKGROUND:
The County maintains a trust fund with CalPERS's California Employers' Retiree Benefit Trust (CERBT) that pre-funds the County's negotiated obligations toward retiree health plan premiums, which are otherwise known as Other Post-Employment Benefits (OPEB). As of September 2024, total assets in the CERBT account were approximately $448 million.
The CERBT program, as would other trust administrators, requires account holders to conduct annual actuarial valuations to assess the funding level for each plan. The funding level is the amount of assets held in trust compared to the total liability based on plan design and demographics. As of the June 30, 2024, actuarial valuation, the County's OPEB plan was 82% funded.
Milliman has conducted the most recent five years of actuarial valuations for the OPEB plan. In addition, Milliman has conducted related ad hoc studies and analyses on the hypothetical impact that potential new retiree benefits would have on the actuarial valuation. Most of the ad hoc work corresponded to labor contract negotiations.
DISCUSSION:
A request for proposals (RFP) for CERBT actuarial services was conducted in December 2024. The Human Resources Department used the same recruitment list of seven companies used by SamCERA in its most recent RFP for actuarial services. Despite the targeted recruitment list and a three-...
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