Due to new GASB and CalPERS requirements, actuarial valuations must now follow a fiscal year calendar. To comply with this new requirement and to satisfy GASB’s bi-annual valuation requirement, next year the County will conduct one full valuation as of January 1, 2011 and a second valuation as of June 30, 2011 (using the same demographic data and assumptions from the January 1 valuation). In addition to the two valuations, the contractor will assist with completing GASB financial statement disclosures and conducting periodic valuations of alternative plan designs for union negotiation purposes.
The agreement with Milliman, Inc. is being recommended without a formal request for proposal (RFP) process as it is in the best interests of the County. 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 another two years. Following the current labor negotiations process and the two valuations next year, the County will conduct a formal RFP process in 2012 for these services to coincide with the completion of this contract.
The contractor has assured compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
County Counsel has reviewed and approved the recommended Agreement and Resolution as to form. The insurance has been reviewed and approved by Risk Management.
Approval of this Agreement contributes to Shared Vision 2025 of a Prosperous Community by providing the County with the actuarial analysis required to determine its liability associated with retiree health benefits and for financial planning purposes.
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