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<br />BI1RTEL <br />7TSSOCIATES, LLC <br /> <br />Exhibit A - Scope of Services <br /> <br />NOV 2 6 2008 <br /> <br />November 24,2008 <br /> <br />Brian Ponty <br />Finance Director <br />City of Redwood City <br />1017 Middlefield Road <br />Redwood City, CA 94063 <br /> <br />Private and Confidential <br /> <br />Re: GASB 45 - Other Post Employment Benefits (OPEB) Actuarial Valuation Fee Estimate <br />Dear Mr. Ponty: <br /> <br />Bartel Associates would be pleased to provide Redwood City actuarial consulting services. This letter <br />summarizes the project scope and our fee estimate for a June 30, 2008 actuarial valuation for Redwood <br />City's retiree healthcare plan, including three alternative benefit options. <br /> <br />Current Retiree Healthcare Benefits <br />Redwood City participates in CaIPERS providing Miscellaneous employees the 2.7%@55 benefit and <br />Safety employees the 3%@50 benefit. The City also provides medical benefits through the CaIPERS <br />healthcare program (PEMHCA), providing a retiree contribution up to the employee-only Bay <br />Area/Sacramento region premium (capped at the Kaiser Bay Area/Sacramento Family premium) for <br />employees who retire directly from the City with a service requirement that varies by bargaining group. <br />F or Safety disability retirees, the City also provides benefits for dependents. Employees retiring with <br />less than the required years of service receive the PEMHCA minimum contribution ($97 per month for <br />2008; $101 per month for 2009). Surviving spouses of retirees also receive the PEMHCA minimum <br />contribution. The City does not provide contributions for retiree dental, vision, or life insurance <br />benefits. The City had 510 active employees and 268 retirees for the last actuarial valuation as of <br />J~uary 1,2006. The City currently pays retiree healthcare benefits on a pay-as-you-go basis. <br /> <br />Alternative Benefit Options <br />In addition to a June 30, 2008 actuarial valuation on the current retiree health care plan, the City asked <br />that we provide costs for the following 3 alternative benefits (applies to future retirees only): <br /> <br />Service Retirement Benefit <br />. Single Premium Bay Area/Sacramento Region <br />Ca ed at Kaiser Ba Area/Sacramento Familv <br />. Single Premium Lowest Cost PEMHCA Plan <br /> <br />. Current Plan <br /> <br /> <br />. Alternative #1 . 50 & 5 <br />also 50 & 10 <br />. Alternative #2 . 50 & 10 <br />(Exec 50 & 5) <br />. 50 & 15 <br />xec50&10 <br />. Alternative #3 . Act> 10 Y~S <br />. Act<10YOS <br /> <br />. All Actives <br /> <br />. New Hires <br /> <br />. Single Premium Lowest Cost PEMHCA Plan <br /> <br />. 2-Party Premium Lowest Cost PEMHCA Plan <br /> <br />. Current Plan <br />. Single Premium Lowe.t Cost PEMHCA Plan <br />plus 3%/year to DC plan <br />. Can opt to waive retiree medical benefit in <br />exchange for 10% lump sum to DC plan plus <br />3 %/year <br />. 3%/ ear to DC Ian <br /> <br />411 Borel Avenue, Suite 445 · San Mateo, CA 94402 <br />main: 650-377-1600. fax: 650-345-8057 · web site: www.bartel-associates.com <br />