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<br />Mr. Brian Ponty
<br />November 24,2008
<br />Page 3
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<br />Please note that our fee estimate will be higher if:
<br />. Redwood City's retiree healthcare promise is more complicated than we have summarized above.
<br />. Participant data is not relatively clean and free from internal inconsistencies or is not provided in
<br />electronic format (Excel workbook) with one record per participant.
<br />. Results are needed for additional assumptions, funding methods, contribution policies, or alternative
<br />plan designs other than the three listed above.
<br />. Results are needed separately for additional employee groups.
<br />. The City requests additional meetings. We will base our fee for additional meetings on our billing
<br />rates and the time needed for the meetings and preparation.
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<br />If the City pre-funds its retiree health care benefits through CERBT, it will need to provide CalPERS a
<br />formal valuation report, an actuarial certification, a funding policy certification, and an Excel
<br />spreadsheet containing valuation information. Our estimated fees to prepare the information required
<br />by CalPERS are $2,000 for a formal valuation report and $500 for the certifications and Excel
<br />spreadsheet. In lieu of a formal valuation report, CalPERS may be willing to accept our results
<br />discussion outline with a certification and cover letter. If the City prefers this alternative, our fee will
<br />be about $750 to finalize the discussion outline rather than $2,000 for a formal valuation report.
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<br />Our discussion outline will include all the information needed for Redwood City's fmancial statement
<br />and should be sufficient for the City's auditors. lithe City would like us to prepare an executive
<br />summary or a draft fmancial statement footnote, our estimated fees would be $1,500 for an executive
<br />summary and $1,000 for a draft fmancial statement footnote.
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<br />Data Requirements
<br />In order for us to begin the GASB 45 study, please provide:
<br />. Summary of plan provisions, including any changes since the January 1,2006 actuarial valuation.
<br />. Total pay-as-you-go costs (Redwood City's retiree healthcare contribution) for the last 3 complete
<br />fiscal years (2005/2006, 2006/07, and 2007/08) and an estimate for the fiscal year ending June 30,
<br />2009.
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<br />· Redwood City's last monthly individual participant CalPERS healthcare billing report. If), l \ '\ L. ~,\C[.~7l
<br />. Active and retired participant data in electronic format (Excel workbook): t \./C \
<br />.~...:,:~). Active Data - name;employ~ number, gender: birth date, hire da~, medicafp , single/2-
<br />party/family eoverage, CalPERS pension plan (Miscellaneous,' ., employee
<br />classification (full-time or part-time), bargaining or employee group, spouse's birth date (if
<br />available), and annual base (or PERSable) compensation. Include any active employees who
<br />have waived healthcare coverage. Note ifhours for part-time employees are less than 20 hours
<br />per week.
<br />· Retiree Data - name, employee number, gender, birth date, retirement type (service or disability),
<br />retirement date, medical plan, single/2-party/family coverage, CalPERS pension plan
<br />(Miscellaneous, Police, or Fire), bargaining or employee group, spouse's birth date (if available),
<br />portion of premium paid by the City, portion of premium paid by the retiree, and whether the
<br />participant is a former employee or surviving spouse. Include retirees and surviving spouses of
<br />retirees who have retired under CaIPERS and participate in PE:MHCA even if they are not
<br />eligible for a City contribution or have waived coverage.
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<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
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