GASB 45 - Chapter 5: The data request
In this section we show an example of an actual data request used for a recent study. The particulars may vary slightly from one study to the next, but the following list is representative of what data an actuary will require to perform an actuarial valuation under GASB 45 (or the private-sector equivalent, FAS 106.)
Written materials:
Relevant sections of collective bargaining agreements (Retirees' Health Insurance)
Current employee booklets, or other communications material
Copy of most recent actuarial report, if any
Amount of funds set aside to pay retiree benefits, if any
Summary of changes in benefits over last 2-3 years
Census information (diskette or e-mail in spreadsheet format preferred):
Census data needed for each benefit eligible employee and retiree (except as otherwise indicated):
Gender
Bargaining unit
Date of birth
Date of hire
Annual "earnings" for purposes of life insurance benefit
Date of retirement (retirees only)
Spouse date of birth if married (retirees only)
Enrollment status in plans (single, two party, family) (retirees only)
Current monthly retiree contributions by individual (retirees only)
Employer contribution (retirees only)
Premiums/Claim Costs
Premiums or claims by month for the medical, Rx, dental, vision, and life insurance providers for current year and most recent two prior years
Administrative charges by month for each coverage for current year and most recent two prior years
Do you really need ALL that data?!
As you can see, this is a rather exhaustive list. While we would always do our best to ask only for data that we believe you are likely to have readily accessible, it's occasionally necessary to apply shortcuts and approximations to perform the valuation. So, if there are any items on the data request that either don't seem applicable to your plan or organization, or appear that they would require an inordinate amount of time to gather, you should double-check with the consultant to see if there are any alternate approaches to the request as written.
While it's impossible to generalize every situation, we believe that most data requests of this type should take somewhere between 8 and 24 hours of labor (1 to 3 dedicated working days) to complete. It's a wide range because it depends on how well maintained and accessible your internal database is. If it looks to you like it's going to take more than 24 hours, you may want to ask the consultant if there's an easier way to complete the tasks that you believe are going to be the most time-consuming.
