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How Much Does an OPEB Valuation Cost?
Article updated July 30, 2021
Bottom Line Up Front
- There are multiple factors that drive the cost of your Other Postemployement Benefit (“OPEB”) actuarial valuation so pricing will vary from organization-to-organization.
- Below you’ll find our pricing guide based on averages we’ve personally seen for a 2-year valuation cycle.
- Please keep in mind that these numbers are estimates only and that pricing may vary on an organization-by-organization basis.
While we would love to think that our clients come to us purely because of our superb actuarial skills and excellent service, the reality is that the public sector works with limited budgets and pricing is certainly a factor.
So how is the price of an actuarial service typically determined?
To be honest, most actuarial firms have their own pricing methodology so it really does depend on a number of factors. I’m here today to shed some light on those key factors that most likely determine your OPEB valuation costs.
Top 10 factors that drive your OPEB valuation cost
- How many employees do you have?
- How many retirees do you have?
- How many cost structures exist (e.g., the percentage of premiums paid by retirees)?
- How many entities will need their costs segregated in the results?
- Have you established an OPEB Trust to pre-fund the liabilities?
- How many data sources will there be (e.g., will all the data be sent in one file or multiple files)?
- Is this a single employer plan, cost-sharing plan, or agency plan? (Most OPEB plans are single-employers unlike pensions where many are cost-sharing plans).
- Is the report comprehensive, providing all your auditors all of the exhibits they need or are the auditors expected to create exhibits based on the report?
- Do you require any in-person meetings/presentations? If so, how many?
- Is the valuation valid for one or two years?
Now that you have an idea of what can drive the costs of your OPEB valuation, below is a rough estimate of how much it may cost. Please keep in mind that this is just a guide based on the averages we’ve seen. Each valuation price may vary.
As mentioned before, each firm has its own pricing methodology. Some firms will send you a quote for your full bi-annual valuation, but if you require an interim valuation report, some firms will charge an additional fee that they may not have listed in the original quote so it’s important to make sure you factor in those fees for an “apples-to-apples” comparison. The estimates above are based on averages of Odyssey’s pricing method which includes the interim valuation.
If you would like a free quote on Odyssey’s valuation and reporting services, reach out to us here! We provide upfront pricing for both years of your GASB 74/75 valuation without those pesky additional or hidden fees. If you have additional questions, feel free to fill out the form below or contact an Odyssey Consultant.
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