IASB GASB 45 Services Agreement

IASB GASB 45 Services Agreement

This AGREEMENT, dated this day of , 20 , is entered into by and between Iowa Association of School Boards (IASB), and (the “Customer”) for services to be rendered during the fiscal year(s).

IT IS AGREED:

1. The Customer certifies it is and shall remain a member in good standing of the IASB for the term of this Agreement.

2. Scope of Services will include the following:

a. Itemization of cost of benefits (total and per employee)

b. Calculation of OPEB expenses on the accrual basis of accounting for implicit and explicit (as applicable) retiree subsidies

c. Projection of future benefit payment costs

d. Determination of the present value of projected benefit payments

e. Calculation of the actuarial accrued liability for OPEB associated with past service costs

f. Determination of an acceptable actuarial cost allocation method to assign costs to specific accounting periods

g. Provide a future cash flow analysis for the Customer

h. Provide an actuarial certification of liabilities in a valuation report suitable for use by the Customer’s auditor in preparation of its financial statements.

3. The Customer hereby appoints IASB as its contracting agent, recognizing that actuarial services will be performed by Gallagher Benefits Services, Inc. (GBS).

4. The standard fee for the initial valuation report will be $ . This fee includes a standard GASB 45 valuation report, a conference call meeting with the Customer before the work begins, and a conference call meeting to review the draft report. Additional consideration, to be billed only if requested by Customer, may include:

a. Optional onsite meeting to present the final report: $1,500

b. Optional additional scenarios: $750 per scenario.

c. Optional off-year “roll-forward” report: $3,000 per report.

5. Customer agrees to remit payment to IASB within 30 days of receipt of invoice following receipt of the initial summary draft actuarial report.

6. Customer shall assume total responsibility for information received or omitted. Provided, however, that nothing herein shall prevent Customer from asserting liability against GBS relating to the actuarial services performed by GBS. IASB shall be liable for any damages or for any loss, regardless of the legal theory under which such liability is asserted, and regardless of whether they have been advised of the possibility of such liability, loss or damage.

IN WITNESS WHEREOF, the Customer and IASB have each caused this Agreement to be executed by their duly authorized representatives.

Iowa Association of School Boards Customer

Signature Signature

Title Title

Date Date

RETURN TO:

Iowa Association of School Boards Name of School Attn: GASB 45 Services Program

6000 Grand Avenue, Suite A

Des Moines, IA 50312-1417 Street

City, State, Zip

GASB 45 Compliance Service Price List

(updated Jan. 2013)

IASB has partnered with Gallagher Benefit Services, Inc. (GBS) to provide this service at a significant reduction in price. Fees are a function of whether or not the district has explicit subsidies or subsidies for Medicare retirees, as well as whether the district has under 100 members. Schools with medical coverage through the Iowa Schools Employee Benefits Association (ISEBA) will also have a reduced price due to the ease of processing the data. The costs below include performing a standard GASB 45 valuation, a conference call meeting with the District before the work begins and a conference call meeting to review the draft report.

Basic fees can be summarized as follows:

IASB Members

Standard GASB 45 actuarial valuation report (implicit subsidy only) / $4,800
Standard GASB 45 actuarial valuation report (implicit and explicit subsidy) / $5,800
Standard GASB 45 actuarial valuation report (implicit, explicit, and Medicare retirees) / $6,800
District with Additional Valuation Groups / $1,550 each additional group
Phase III Districts: Those with less than 100 members (including retirees) / $1,150
Phase III Districts: those with less than 100 eligible participants and 1 explicit subsidy / $1,950
Phase III Districts: Those with less than 100 eligible participants and 2 explicit subsidies / $2,950

Optional services available at additional charges:

· Onsite meeting with the actuaries to present the final report: $1,500

· Additional assumption scenarios (changes in enrollment, retirement provisions, benefit designs, trends, etc.): $750 per scenario

· Off-year report: $3,000 per report