1. Beth Wright Managing Director
OPEB Reporting
Beth Wright
Managing Director

2. GASB 74 / 75 Quick Review Timing and Frequency Our Process
Report Exhibits
Miscellaneous

3. Quick Review
GASB 74: Financial reporting for OPEB plans (a.k.a. OPEB Trust).
Effective date for plans is fiscal years beginning after June 15, 2016 (e.g., fiscal year ending June 30, 2017).
OPEB Trust or equivalent arrangement means: (1) employer contributions are irrevocable, (2) assets are dedicated to paying OPEB plan benefits and (3) legally protected from the creditors.
GASB 75: Accounting and financial reporting for employers who have OPEB plans.
Effective date for employers is fiscal years beginning after June 15, 2017 (e.g., fiscal year ending June 30, 2018).

4. Quick Review New Acronyms VD - Valuation Date MD - Measurement Date
RD - Reporting Date (a.k.a. FYE)
ADC – Actuarially Determined Contribution
TOL – Total OPEB Liability
FNP – Net Fiduciary Position (a.k.a. assets)
NOL – Net OPEB Liability
OE – OPEB Expense
D I/O – Deferred Inflows/Outflows

5. Quick Review Major Changes
All plans required to use Entry Age Normal (EAN) level percent of pay cost method to develop the Total OPEB Liability (TOL).
Annual changes in Net OPEB Liability (NOL) will generally be reported as OPEB expense (OE) as they occur.
Will need to track Deferred Outflows of Resources and Deferred Inflows of Resources (DO/I).
Net OPEB Liability (NOL) moves to balance sheet of employers.
If current and expected future plan assets related to current members are insufficient to cover future benefit payments, a blended discount rate is developed. We are calling this the Single Equivalent Interest Rate (SEIR).

6. Timing and Frequency Actuarial valuations must be at least biennial.
Specific timing between VD, MD and RD must be maintained.
Valuation Date (VD) and Reporting Date (RD)
For GASB 74 purposes, the VD must be no more than 24 months prior to the RD.
For GASB 75 purposes, the VD must be no more than 30 months and 1 day prior to the RD.
Measurement Date (MD) and Reporting Date (RD)
For GASB 74 purposes, the MD must be the RD.
For GASB 75 purposes, the MD must be no earlier than the prior RD.
Reporting Date (RD) and Fiscal Year End (FYE)
For GASB 74 purposes, the RD must be the Trust’s FYE.
For GASB 75 purposes, the RD must be the Employer’s FYE.

7. Our Process GASB reports will be prepared every year.
Four basic cycles:
Even Year Cycle – No OPEB Trust
Odd Year Cycle – No OPEB Trust
Even Year Cycle – With an OPEB Trust
Odd Year Cycle – With an OPEB Trust

8. Our Process Even Year Cycle – No OPEB Trust
Last full valuation prepared as of 6/30/2016
Used for 6/30/2017 GASB 45 reporting.
Will be used as the basis for 6/30/2018 GASB 75 reporting. 
In February, these employers received a data request for premiums and claims paid for FYE 6/30/2017 (the measurement date for their 6/30/2018 reporting).  We have received the information for many of the plans and are currently working to prepare the reports. 
These plans will receive a data request soon for a full valuation (new data, premiums/claims, etc.) as of 6/30/2018.  The 2018 valuation will be the basis for the 6/30/2019 and 6/30/2020 GASB reports. 

9. Our Process Odd Year Cycle – No OPEB Trust
Last full valuation prepared as of 6/30/2017 (or will be)
Used for 6/30/2017 GASB 45 reporting.
Will be used as the basis for 6/30/2018 and 6/30/2019 GASB 75 reporting. 
Last summer, these employers received a data request for a full valuation (new data, premiums/claims, etc.).   We have received the information for many of the plans and have either already provided their report or are currently working to prepare the report.  These reports are going out continuously as they are completed. 
These plans will receive a data request soon for premiums, claims and OPEB expenses paid during FYE 6/30/2018 (the measurement date for their 6/30/2019 reporting).  Their next full valuation will be as of 6/30/2019.  

10. Our Process Even Year Cycle – With an OPEB Trust
Last full valuation prepared as of 6/30/2016
Used for 6/30/2017 GASB 45 and 6/30/2017 GASB 74 reporting. 
GASB 74 report contained the ADC for FYE 6/30/2018 and 6/30/2019.
Will be used as the basis for 6/30/2018 GASB 74/75 reporting.
Last month, these employers received a data request for 6/30/2018 asset reconciliation and premiums / claims paid outside the trust.  Once we receive this information, we will use the 6/30/2016 valuation as the basis, re-measure the liabilities and apply roll forward techniques to determine the liabilities as of 6/30/2018.  The report will provide 6/30/2018 disclosure information under both GASB 74 and GASB 75. 
These plans will receive another data request soon.  This will be for a full valuation as of 6/30/2018.  This valuation will be the basis for the 6/30/2019 and 6/30/2020 GASB reports. 

11. Our Process Odd Year Cycle – With an OPEB Trust
Last full valuation prepared as of 6/30/2017 (or will be)
Used as basis for 6/30/2018 GASB 74/75 reporting. 
GASB 74/75 report will contain the ADC for FYE 6/30/2019 and 6/30/2020.
Only a few plans are in this cycle. They are all either new CMC clients or have only recently established an OPEB Trust. All of the information requests are currently handled individually. 
These plans will receive data request next year.  Their next full valuation will be as of 6/30/2019.   

12. Report Exhibits All reports for 6/30/2018 reporting will contain:
Summary page
Introduction section
Financial Notes section
Required Supplementary Information section
OPEB Expense section
Summary of Plan Provisions section
Actuarial Assumptions and Methods section
Actuarial Cost Method section
Deferred Outflows and Inflows section

13. Report Exhibits – Summary Page
The Summary page will contain information such as valuation date, measurement date, reporting date, membership information and discount rate.

14. Report Exhibits – Summary Page
The Summary page will also contain information such as liabilities, assets, expense and deferred inflow/outflow balances.

15. Report Exhibits - Membership
The Financial Notes section will contain various exhibits along with the GASB paragraph to which they correspond. For example:

16. Report Exhibits – Rate of Return
For funded plans, an exhibit of particular interest in the Financial Notes section is information about the long-term expected return on plan assets. To the extent we receive the information, it will be displayed.
Not all plans will provide the information. In this case, we will indicate the rate was determined by the employer.

17. Report Exhibits - Sensitivity
The Financial Notes section will provide the sensitivity information. For funded plans, the information is based on NOL. For unfunded plans, the information is based on TOL.

18. Report Exhibits - Sensitivity
The Financial Notes section will provide the sensitivity information. For funded plans, the information is based on NOL. For unfunded plans, the information is based on TOL.

19. Report Exhibits – Change in NOL
Financial Notes section will contain a display for the changes in the NOL (or TOL if unfunded).

20. Report Exhibits - ADC
For funded plans, the Financial Notes section will contain the development of the Actuarially Determined Contribution (ADC).

21. Report Exhibits – DO/I
Beginning for FYE 6/30/2018, the Financial Notes section will contain a summary of the Deferred Outflows and Deferred Inflows.

22. Report Exhibits – DO/I
Exhibit of the Deferred Outflows and Deferred Inflows to be recognized in the OPEB expense.

23. Report Exhibits – Investment Earnings (Gain)/Loss
The OPEB Expense (OE) section will display the calculation of the investment earnings (gain)/loss.

24. Report Exhibits – OPEB Expense
Beginning for FYE 6/30/2018, the OPEB Expense (OE) section will display the calculation of the OE.

25. SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY
Report Exhibits – RSI
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY

26. SCHEDULE OF NET OPEB LIABILITY
Report Exhibits – RSI
SCHEDULE OF NET OPEB LIABILITY

27. Fiscal Year Ending June 30
Report Exhibits – RSI
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Year Ending June 30
2018
Actuarially Determined Contribution (ADC)
$231,204
Contributions in relation to the ADC
160,520
Annual contribution deficiency (excess)
$70,684
Covered payroll*
$1,704,576
Actual contributions as a percentage of covered payroll
9.42%

28. Measurement Period Ending
Report Exhibits – DO/I
The Balances of Deferred Outflows and Deferred Inflows section will provide exhibits of the deferred outflows and inflows by source. For example:
Measurement Period Ending
Experience Losses
(a)
Experience Gains
(b)
Recognition
Period
(Years)
(c)
Amounts Recognized in OPEB Expense through June 30, 2018
(d)
Balances as of June 30, 2018
Deferred Outflows of Resources
(a) – (d)
Deferred Inflows of Resources
(b) – (d)
Deferred Outflows and Inflows of Resources Arising from Differences Between Expected and Actual Experience:
2018
$ 21,014
$ 0
5.85
$ 3,592
$ 17,422
Deferred Outflows and Inflows of Resources Arising from Changes in Assumptions:
$ 117,666
$ 20,114
$ 97,552
Deferred Outflows and Inflows of Resources Arising from Differences Between Projected and Actual Earnings on Plan Investments:
$ 452
5.00
$ 90
$ 362

29. Report Exhibits – Not Included
The reports will also indicate various paragraphs for which we are not providing specific information. For example:
Under GASB 74 - Paragraphs 34(a)(1)-(3): CMC is not expected to supply this information.
The name of the plan, identification of the entity that administers the plan, and identification of the plan as a single employer, agent, or cost-sharing plan.
The number of participating employers and nonemployer contributing entities
Information regarding the OPEB plan’s board and its composition
Under GASB 74 - Paragraph 34(b): CMC is not expected to supply this information.
Investment policies
Identification of investments in any one organization that represent 5% percent or more of the OPEB plan’s fiduciary net position
The annual money-weighted rate of return on OPEB plan investments

30. Report Exhibits – Not Included
Under GASB 75 - Paragraph 50(d): CMC is not expected to supply this information.
brief description of the basis for determining the employer’s contributions to the OPEB plan
Identification of the authority under which contribution requirements are established or amended
legal or contractual maximum contribution rates
the contribution rates of the employer and nonemployer contributing entities

31. Miscellaneous Administrative costs to include in the OE
If you choose to report any, should be those costs not associated with the direct payment of benefits and not paid from an OPEB trust (audit fees, actuarial fees, as well as, the cost of benefits and salaries associated with the administration of the OPEB plan).
Expenses booked elsewhere should not be included in the OPEB expense (to avoid double counting of such expenses).
For plans with a trust, we will include the administrative costs reflected in the asset statement.
For plans without a trust, we will ask for it. If you do not answer, we will assume $0.

32. Miscellaneous State Health Plan (SHP) considerations
Employers with OPEB plan benefits provided through the SHP and are part of the cost-sharing arrangement (there are only a few employers) will receive their OPEB disclosure information from the State. A separate OPEB valuation may be needed for any ancillary benefits not provided through the SHP.
Employers with OPEB plan benefits provided through the SHP and are NOT part of the cost-sharing arrangement (using the “direct bill” arrangement) will need OPEB valuation. The State will not provide disclosure information for those employers under the “direct bill” arrangement.