Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Opeb Actuarial Services topic
No spam. Unsubscribe anytime.
Council committee reviews proposal to renew actuarial services for retiree health liabilities
Summary
Budget and Finance committee reviewed a proposal to authorize professional services with Conrad Siegel to perform OPEB actuarial valuations under GASB standards; committee recommended moving the item to the next legislative agenda.
Harrisburg’s Budget and Finance Committee reviewed a proposal April 8 to authorize the city to negotiate and enter a professional services agreement with Conrad Siegel Inc. to perform actuarial valuations related to other post‑employment benefits (OPEB), then recommended the item be moved to the next legislative agenda.
Brian McCutcheon, who introduced the presentation on behalf of the finance department, said the actuarial valuations cover post‑employment medical benefits for retirees in police, fire and non‑uniform groups, and that Conrad Siegel prepares a multi‑page valuation that is used in the city’s annual financial statements. “What’s being brought before you tonight is gonna be the evaluation they are prepared to prepare that will be dated 01/01/2024,” McCutcheon said.
McCutcheon summarized historical liability figures from the valuation schedules provided to council. He said liabilities were in the roughly $130 million–$136 million range in earlier years, rose during the pandemic to figures described in the presentation as about $157 million to $177 million, and were shown at approximately $138 million at the end of 2023. He noted the valuation process uses participant data (active employees, retirees, eligible spouses and dependents) and that the most recent schedule showed roughly 748 total participants. McCutcheon added that the firm’s proposed fee for the primary valuation is about $14,000, with a lower update fee for the second year of the contract.
Finance Director Bob Kenick and Mr. Cedric (staff referenced in the handout) supported the presentation. Committee members had no substantive questions during the session. Vice President Green thanked the presenters and said he would recommend moving the resolution to the next legislative agenda for formal consideration.
No formal vote on the contract was recorded at the April 8 committee session; the committee moved the matter forward to the legislative agenda for council action.
