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:
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Adopt a resolution authorizing an amendment with Milliman Inc. for actuarial services, increasing the amount by $250,000 to an amount not to exceed $750,000.
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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. The original Agreement was for the term of December 1, 2020 through December 31, 2021, and initially authorized an amount up to $200,000 for these actuarial services. The parties subsequently amended the Agreement to increase the maximum amount payable to $500,000, and to increase the term through December 31, 2022.
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'...
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