11.01 - Other Post Employment Benefits Actuarial

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`' City of Pequot Lakes - - MEMORANDUM To: Pequot Lakes City Council From: Nancy Malecha, Finance Administrator/Deputy City Clerk Date: March 15, 2012 Subject: Other Post-Employment Benefits Actuarial In 2009, the City of Pequot Lakes was required to implement Government Accounting Standard Board (GASB) Statement No. 45. This accounting standard required local governments to report a liability for other post-employment benefits. The amount to be reported on the financial statements is based on an actuarial calculation using the City's � post employment benefits offered. The purpose of this actuarial valuation is to determine the City's liability regarding post employment benefits (i.e. retiree benefits). In addition, GASB 45 states that plans with 200 or fewer members must perform an actuarial valuation at least once every three years. It is time for the City to perform its next actuarial valuation. I contacted Hildi Inc. from Minneapolis as they performed the City's actuarial valuation in 2009. As you can see on the attached consulting services agreement, their quote for this service is $1,200-$1,400. I am requesting that the City Council accept the consulting services agreement from Hildi Inc. Thank you. �