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A MILLIMAN GLOBAL FIRM <br /> 111 Milliman <br /> Consultants and Actuaries 71 S.Wacker Drive,31st Floor <br /> Chicago,IL 60606 <br /> iel +1 312 726.0677 <br /> Fax+1 312 499.5695 <br /> www.milliman.com <br /> June 28, 2007 <br /> Mr. Ronald Neufeld <br /> Director of Financial Management <br /> City of Decatur <br /> 1 Gary K. Anderson Plaza <br /> Decatur, �llinois 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 information that we have received from you <br /> about the City's other post-retirement benefit plans, eligible participants, and contribution <br /> requirements. <br /> Project Description <br /> Based on our review of the information that you provided, the City is seeking actuarial <br /> assistance to assess the financial implications of its current other post-employment benefits. <br /> Specifically, it is seeking assistance in measuring the OPEB liabilities under the requirements <br /> of GASB Statement#45. <br /> Based on information in the RFP, the City currently has approximately 560 active employees <br /> in its health insurance plans who may become eligible for enrollment at retirement and <br /> approximately 93 retirees in these plans. Of the 93 retirees, 18 are Medicare eligible. <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 Va1ue 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 />