Approval of a Professional Services Agreement with PFM Asset Management LLC to Establish and Administer a Post Employment Benefits Irrevocable Trust. City of Culver City California Agenda Item Report Meeting Date: 01/24/2011 CITY COUNCIL AGENDA ITEM: Approval of a Professional Services Agreement with PFM Asset Management LLC to Establish and Administer a Post Employment Benefits Irrevocable Trust Contact Person/Dept.: Jeff Muir/Finance Department Fiscal Impact: Yes x No Phone Number: (310) 253 5865 General Fund: Yes x No Item Number: A 2 Public Hearing: Action Item: x Attachments: Commission Action Required: Yes No Date: _______________ Public Notification: (E Mail) Meetings and Agendas City Council (01/19/11); (E Mail) PFM Asset Management LLC (01/19/11) Department Approval: Jeff Muir (01/13/11) Chief Financial Officer Approval: Jeff Muir (01/13/11) City Attorney Approval: Carol Schwab (by H. Baker) (01/18/11) City Manager Approval: John M. Nachbar (01/19/11) RECOMMENDATION: Staff recommends the City Council approve a professional services agreement with PFM Asset Management LLC to establish and administer a post employment benefits irrevocable trust. BACKGROUND: Government Accounting Standards Board Statements 43i (GASB 43) and 45ii (GASB 45) required government entities to begin treating Other Post Employment Benefits (OPEB) in a similar fashion to pensions. This includes a requirement for independent actuarial calculations to determine the total liability based on the benefit provided disclosure of this liability in the financial statements calculation of the Annual Required Contribution (ARC) to fund the total liability over a thirty year period and recording any unfunded portion of the annual ARC as a liability on the balance sheet. The most common types of OPEB benefits include health insurance and dental vision prescription or other healthcare benefits provided to eligible retirees and in some cases their beneficiaries. Culver City currently provides health ...
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