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Milliman 71 S.Wacker Drive <br /> 31 st Floor <br /> Chicago,IL 60606 <br /> USA <br /> Tel +1312 726 0677 <br /> May 17, 201 1 Fax +1 312 499 5695 <br /> milliman.com <br /> Mr. Ronald Neufeld <br /> Director of Financial Management <br /> City of Decatur <br /> 1 Gary K. Anderson Plaza <br /> Decatur, Illinois 62523-1196 <br /> RE: Proposal for Actuarial Valuation of Other Post-employment Benefits <br /> under GASB 45 <br /> Dear Ron: <br /> Thank you for the opportunity to submit a proposal for actuarial consulting services related to <br /> the actuarial valuation of other post-employment benefits (OPEB) under GASB 45 to the City <br /> of Decatur (City). Below we have outlined our understanding of the project scope, our <br /> project plan and estimated fees based on the GASB 45 actuarial consulting services we have <br /> provided to the City during the last two years. <br /> Project Description <br /> Our understanding is that the City is seeking Milliman's continued actuarial assistance to <br /> assess the financial implications of its current other post-employment benefits. Specifically, it <br /> is seeking assistance in measuring the OPEB liabilities under the requirements of GASB <br /> Statement#45. <br /> Based on information in our last actuarial valuation report, the City currently has <br /> approximately 550 active, employees in its health insurance plans who may become eligible <br /> for enrollment at retirement and approximately 90 retirees in these plans. <br /> The proposal will discuss Milliman's work plan and fees for providing a bi-annual calculation <br /> of the following GASB 45 values for the OPEB benefits: <br /> 1. Actuarial Accrued Liability <br /> 2. Actuarial Plan Value of Plan Assets, if any <br /> 3. Actuarial Present Value of Total Projected Benefits <br /> 4. Unfunded Accrued Liability <br /> 5. Normal Cost <br /> 6. Net OPEB Obligation <br /> 7. Annual Required Contribution <br /> Offices in Principal Cities Worldwide <br />