23-OTHER POST-EMPLOYMENT BENEFITS (OPEB)

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Item No. 23 memo�andum TO: Mayor & City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: OTHER POST-EMPLOYMENT BENEFITS (OPEB) DATE: 2-13-2013 BACKGROUND: The Governmental Accounting Standards Board Statement 45 (GASB 45) requires governmental entities to have an actuarial evaluation of what are referred to as "other post-employment benefits". The City of Paris offers only one such benefit and that is medical insurance coverage for retirees who meet certain qualifications (hired before 10-1-2004, meet the rule of 80, and are under age 65). As a cost savings measure, the North Central Texas Council of Governments (NCTCOG) coordinated a request for proposals for actuarial services negotiating with several actuarial consultants to obtain the best price for these services. The City of Paris and over 100 other governmental entities in Texas took advantage of the reduced pricing and entered into an agreement for these services in 2009. STATUS OF ISSUE: The previous agreement has now expired. The NCTCOG has again negotiated favorable rates for these services, and the City may take advantage of these new discounted rates. Services provided in the past were excellent, and the price was about 70% of what the City had estimated the cost to be had it negotiated a standalone agreement. BUDGET: Total estimated cost for the City over the two fiscal year period covered by the agreement is estimated to be $6,525. This is $525 less than the City paid over the last two years. Money for these services is provided in the Finance Department budget. RECOMMENDATION: Motion to approve a resolution authorizing the City Manager to execute all documents necessary for obtaining GASB 45 actuarial services through the NCTCOG and Gabriel, Roeder, Smith & Company. 153