Services › OPEB Valuations
Other Post-Employment Benefits (OPEB) actuarial valuations for public and private employers. GASB 74, GASB 75, and ASC 715-60 compliant reporting for retiree medical, dental, vision, and life insurance plans. Serving employers across Arkansas, Texas, Louisiana, Tennessee, Kentucky, Alabama, Mississippi, Florida, Indiana, Oklahoma, Ohio, and West Virginia.
Other Post-Employment Benefits (OPEB) are benefits other than pensions that employers provide to retirees — most commonly retiree health insurance, but also dental, vision, life insurance, and long-term care coverage. These promises represent significant long-term liabilities for both public and private employers, and accounting standards require that they be measured and disclosed by a qualified actuary.
For public-sector employers, GASB Statements No. 74 and 75 govern OPEB financial reporting. GASB 74 applies to the OPEB plan itself (if administered through a trust), while GASB 75 governs employer accounting — requiring governmental entities to recognize their net OPEB liability on their financial statements, often for the first time. For private-sector employers, ASC 715-60 (formerly SFAS 106) requires similar recognition and disclosure of postretirement benefit obligations.
Osborn, Carreiro & Associates provides independent OPEB actuarial valuations for employers throughout the South, Midwest, and Southeast. Our actuaries have extensive experience with the full range of OPEB plan designs — from traditional employer-paid retiree health coverage to implicit rate subsidy arrangements, Medicare supplement plans, and retiree-pay-all programs. We serve clients in Arkansas, Texas, Louisiana, Tennessee, Kentucky, Alabama, Mississippi, Florida, Indiana, Oklahoma, Ohio, and West Virginia.
GASB 74 requires OPEB plans administered through qualifying trusts to report the total OPEB liability, net OPEB liability, and supporting schedules in the plan's financial statements. GASB 75 extends this to participating employers, requiring them to recognize their proportionate share of the net OPEB liability on their own balance sheets. Our actuaries prepare the full suite of GASB 74 and GASB 75 disclosures — including the discount rate calculation, sensitivity analyses, and 10-year required supplementary information schedules. We serve governmental entities in Arkansas, Texas, Louisiana, Tennessee, Kentucky, Alabama, Mississippi, Florida, Indiana, Oklahoma, Ohio, and West Virginia.
Private-sector employers that provide retiree health or other post-employment benefits must measure and disclose their accumulated post-retirement benefit obligation (APBO) and net periodic benefit cost under ASC 715-60. Our team prepares the full ASC 715-60 disclosure package — including the APBO roll-forward, plan assets reconciliation, net periodic benefit cost components, and sensitivity analyses — coordinating directly with your external auditors. We also prepare Medicare Part D actuarial equivalence certifications for employers that provide creditable prescription drug coverage to Medicare-eligible retirees.
Many public employers that allow retirees to remain on the active employee health plan — even if retirees pay the full blended premium — have an OPEB liability they may not realize. Because retirees are generally older and have higher claims costs than active employees, the blended premium they pay is less than the true cost of their coverage. This difference is called the implicit rate subsidy, and under GASB 75 it must be measured and reported as an OPEB obligation.
Osborn, Carreiro & Associates has extensive experience calculating implicit rate subsidies for governmental employers throughout our service territory. We work with your health plan data — or develop reasonable assumptions where plan-specific data is limited — to produce defensible implicit rate subsidy calculations that satisfy your auditors and comply with GASB 75 requirements.
We provide OPEB valuations and GASB/ASC compliance services to public and private employers in the following states.
AR
Arkansas
TX
Texas
LA
Louisiana
TN
Tennessee
KY
Kentucky
AL
Alabama
MS
Mississippi
FL
Florida
IN
Indiana
OK
Oklahoma
OH
Ohio
WV
West Virginia
Arkansas: Our home state, where we serve municipalities, counties, school districts, and private employers with OPEB valuations ranging from small implicit rate subsidy calculations to large retiree health plan obligations.
Texas & Oklahoma: Large governmental employers in Texas and Oklahoma often maintain significant retiree health obligations. We provide independent GASB 75 valuations for cities, counties, and special districts that need an alternative to the large national actuarial firms.
Louisiana, Mississippi & Alabama: Gulf Coast public employers rely on our team for timely GASB 74 and GASB 75 OPEB compliance work coordinated with their external auditors.
Tennessee, Kentucky, Indiana, Ohio, Florida & West Virginia: Public and private employers throughout the mid-South, Midwest, and Southeast benefit from our independent, fee-for-service OPEB actuarial approach.
Contact us to discuss your OPEB actuarial and reporting needs. We serve public and private employers in Arkansas, Texas, Louisiana, Tennessee, Kentucky, Alabama, Mississippi, Florida, Indiana, Oklahoma, Ohio, and West Virginia.