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OPEB Studies
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Click on the titles below to open the PDF.
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2007 Other Post-Employment Benefits (OPEB) Actuarial Valuation Report
[644kb]
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2007 LEOFF 1 Medical Benefits Study
[974kb]
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Please note that PDF files are best viewed using Adobe Reader’s latest version. Click on the icon below to access free updates:
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OPEB Calculation Tool - Version 1.1
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OSA developed several tools (spreadsheets) for use by local governments to calculate OPEB costs for LEOFF 1 and PEBB plans.
NOTE: Please read the Instructions document first. When accessing the tools,
please download them to your computer first and do not rename the file.
OPEB Calculation Tool Instructions
LEOFF 1 GASB 45 Tool
PEBB GASB 45 Tool
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Changes in OPEB Reporting
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New financial reporting requirements in Governmental Accounting Standards Board (GASB) Statement 45, entitled "Accounting and Financial Reporting by Employers
for Post Employment Benefits Other Than Pensions," cause concern for many public entities. The following Q & A should help the preparers of financial statements
for local governments satisfy the new requirements.
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Frequently Asked OPEB Questions
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Does GASB 45 Apply to My Entity?
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If your entity does both of the following, GASB 45 applies. Does your entity:
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Report financial statements using Generally Accepted Accounting Principles (GAAP basis)?
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Offer Other Post Employment Benefits (OPEB) subsidies? These could be direct subsidies like paying for health related benefits, insurance, or long-term
health care to retirees. Besides these direct payments to members, grouping retirees and active members together for the purpose of determining premiums
qualifies as providing an indirect subsidy.
Examples of entities where GASB 45 may apply – those who:
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When Does Reporting Begin Under GASB 45?
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It
depends on the gross annual revenue of your entity in the fiscal
year ending after June 15, 1999.
If your entity had 1999 revenues of $100,000,000 or more, your
entity will first report in Phase 1. Phase 1 begins the first
fiscal period ending after December 15, 2006.
If your entity had 1999 revenues of less than $100,000,000, but
more than $10,000,000, your entity will first report in Phase 2. Phase 2 begins the first fiscal period ending after December 15,
2007.
If your entity had 1999 revenues of less than $10,000,000, your
entity will first report in Phase 3. Phase 3 begins the first
fiscal period ending after December 15, 2008.
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How do Entities Determine OPEB Costs?
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It depends on how many members your entity’s OPEB plan
contains.
If your entity’s OPEB plan has 100 or more members, GASB 45 requires you to have an actuary determine the costs of the plan by performing an actuarial valuation.
If your entity’s OPEB plan has fewer than 100 members, GASB 45 provides TWO options for determining the costs of your plan. You can either have:
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An actuary perform an actuarial valuation of the plan.
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Do the
valuation yourself using simplified assumptions and
calculations permitted under GASB's "alternative measurement
method."
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My Entity has Fewer than 100 Members in its OPEB Plan.
Can I Perform the Alternative Calculation to Determine My
Entity’s OPEB Costs?
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Yes.
The Office of the State Actuary (OSA) will develop an interactive-online tool for use by local governments. We will complete the tool and have it available on our
website early in 2008. We intend for employers who either employ LEOFF 1 members or participate in PEBB to use this tool. The tool requires that you input the
following data from the members in your OPEB plan:
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How Often do OPEB Costs Need to be Determined?
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It depends on how many members your entity’s OPEB plan contains.
If your entity’s OPEB plan has 200 or more members, GASB 45 requires you to determine costs at least every two years.
If your entity’s OPEB plan has fewer than 200 members, GASB 45 requires you to determine costs at least every three years.
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I Represent a Local Government. Can we Use the
"2007
LEOFF 1 Medical Benefits Study" Performed by the Office of the
State Actuary (OSA) to Report Our LEOFF 1 OPEB Liability?
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No.
The OSA LEOFF 1 study reports the state-wide LEOFF 1 OPEB liability. GASB 45 requires individual entities to report their OPEB liability. To see how your
entity can have these costs calculated see the entry, “How do Entities Determine OPEB Costs?” above.
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Who Prepared this Information?
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Phillip Parks, CPA, Assistant Audit Manager from the Washington State Auditor’s Office assisted in the preparation of this
FAQ. Troy Dempsey, Actuarial Assistant,
from the Office of the State Actuary, provided technical assistance.
If you have other questions about reporting under GASB please e-mail either:
Troy Dempsey at
dempsey.troy@leg.wa.gov
Phillip Parks at
parksp@sao.wa.gov
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