Approval of an Amendment to an Existing Professional Services Agreement with AON Consulting for the Actuarial Services Required by Governmental Accounting Standards Board Statement No. 45. City of Culver City California Agenda Item Report Meeting Date: 08/02/2010 CITY COUNCIL AGENDA ITEM: Approval of an Amendment to an Existing Professional Services Agreement with AON Consulting for the Actuarial Services Required by Governmental Accounting Standards Board Statement No. 45. Contact Person/Dept.: Jeff Muir/Finance Fiscal Impact: Yes X No Phone Number: (310) 253 5865 General Fund: Yes X No Item Number: C 3 Public Hearing: Action Item: Attachments: Commission Action Required: Yes No X Date: _______________ Public Notification: (E Mail) Meetings and Agendas City Council (07/29/10) Department Approval: Jeff Muir (07/22/10) Chief Financial Officer Approval: Jeff Muir (07/22/10) City Attorney Approval: Carol Schwab (by H. Baker) (07/28/10) Acting City Manager Approval: Martin R. Cole (07/29/10) RECOMMENDATION: Staff recommends the City Council approve an amendment to the existing professional services agreement with AON Consulting for actuarial services required by Governmental Accounting Standards Board (GASB) Statement No. 45 BACKGROUND: GASB Statement 45 In 2004 the Government Accounting Standards Board (GASB) issued rules relating to the accounting and reporting of Other Post Employment Benefits (OPEB). These include all benefits other than retirement benefits that are earned by employees as a result of active service but are not paid out as benefits until the beneficiaries have retired. The main purpose of implementing the reporting requirements was to ensure that public entities accurately represent the cost of providing benefits as these costs are incurred (as benefits are earned) and not at a later date when benefits are paid out. The approach implemented by GASB for OPEB is similar to that long required of retirement plans in that retirement costs are incurred and...
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