GASB 45


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Milliman consultants have offered guidance to governments on the implications of GASB 45 and GASB 43 since the new rules on accounting for other post-employment benefits (OPEBs) were first issued in 2004. We also are experts in interpreting the subsequent pronouncements issued by GASB regarding these rules.

With compliance deadlines for some organizations already here and others coming soon, Milliman is actively assisting governments of all sizes with the broad range of tasks required by GASB 45. This accounting standard requires the expertise of both pension and healthcare actuaries, and our national team of actuaries is uniquely positioned to provide comprehensive assistance. We have a proven track record advising government entities on every aspect of GASB45 implementation, including:

Valuation

Milliman has been performing actuarial valuations since 1947, building an unparalleled reputation for accurate and insightful valuation work. Clients rely on our valuations to accurately demonstrate current true costs and liabilities and how they may change under various future scenarios. For smaller entities with fewer than 100 participants, Milliman also offers a cost-effective valuation tool, GASBhelp.

Plan design

When there is a clear picture of the liabilities and contributions associated with post-retirement benefits, Milliman offers guidance on possible alternatives. There are a range of options other than simply ending retiree benefits, including changing eligibility requirements, decreasing retiree subsidies, offering disease-management programs, and sharing cost increases.

Funding strategies

As governments grapple with the cost of GASB 45 compliance, a range of funding options have emerged as possible ways to meet funding obligations. Milliman is experienced in educating clients about available funding vehicles—such as Section 115 Trusts, 401(h) accounts, and Voluntary Employee Beneficiary Associations (VEBAs)—and helping them select those appropriate for their needs.

Implementation and communication

When it's time to implement plan changes, Milliman is frequently called on to assist with the often complex process. Our consultants work closely with governments to insure that benefit plan changes are clearly communicated to participants early in the process, ensuring this critical aspect of implementation goes smoothly.

Next steps

Visit the website

GASB45help.com