This, of course, is one of the key questions that a Treasurer, Auditor, Accountant or School Business manager has when they begin researching the costs of GASB OPEB compliance. Here at Odyssey Advisors, I get this question hundreds of times each year from entities large & small.
We understand. Price, among many factors, matters. Especially in a municipal setting where budgets are tight and there are many stakeholders.
So, what’s it all cost? As you’d likely expect, the answer is “it depends”. There are many factors that go in developing the costs so I’ll try to outline those factors and how they impact costs so you can get a best estimate.
What are the factors that impact price?
- How many employees do you have?
- How many retirees do you have?
- How many medical/dental/life insurance plans do you offer?
- How many cost structures (e.g., % of premiums paid by retirees) exist?
- How many entities will need their costs segregated in the results?
- Have you established an OPEB Trust to prefund the liabilities?
- How many data sources (e.g., will all data be sent in one file or multiple files) will there be?
- Is this a single employer plan, cost sharing plan or agency plan (most OPEB Plans are single employer)?
- Do you require an in-person meeting/presentation? If so, how many?
- Have you done a previous study or is this the first time?
Here are some ESTIMATED prices for an OPEB valuation under GASB 74 & GASB 75 which could increase or decrease based on answers to the above questions:
Although all of these numbers and prices are very general, I do hope this article helps you to have a better feel for the pricing of OPEB valuations under GASB 45, GASB 74 & GAB 75. If you’re ready to get an actual quote that details pricing, the Odyssey Difference and how we can help, feel free to submit a form or give us a call at (855) 401-GAIN (4246) and press option 1.