June 26, Sarah B. Caruso Chief Financial Officer Jefferson Parish Public School System 4600 River Road Marrero, LA 70053

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1 June 26, 2015 Sarah B. Caruso Chief Financial Officer Jefferson Parish Public School System 4600 River Road Marrero, LA Enclosed is our proposal for the Government Accounting Standards Board (GASB) statement 45 actuarial services. Our fee includes the valuation and footnotes for this year and the additional mid-valuation years. We only need a signature on the last page to engage our services. If you have any questions, please call Scott Fontenot at Sincerely, Scott Fontenot Consultant

2 GASB 45 Actuarial Services For Presented By Scott Fontenot & Mike Conefry June, 2015

3 1. Proposal Summary Fontenot Benefits Actuarial Consulting FBAC is pleased to present our proposal for actuarial services to comply with Governmental Standards Board Statement No. 43/45 Other Post Employment Benefits (GASB 43/45). We meet all requirements for actuarial services to fully comply with GASB 45. If you have any questions or need additional information, please contact Scott Fontenot at or 2. Firm Profile & Qualifications FBAC is a Metairie, Louisiana based Employee Benefits & Actuarial Consulting firm establish in It is our mission to provide creative solutions in the areas of employee benefits, compensation and retirement plans to local, public and private employers. We offer practical and cost effective solutions from an unbiased perspective. The consultants of FBAC have backgrounds in Actuarial Studies, Insurance Underwriting and Accounting Financial Services. We specialize in actuarial and benefits consulting for local governments, hospital systems, school systems and non-profit organizations. We completed the first GASB 45 OPEB evaluation and implementation in the United States for Orleans Parish Judicial Courts and the first valuation in Alabama. We are uniquely qualified as GASB 45 consultants due to our understanding of all the aspects of the new requirements and how they apply to Governmental Agencies. We can assist you with all aspects of GASB 43/45 implementation. We can calculate the obligation, offer options to reduce or eliminate the obligation, set up the OPEB trust and communicate these new obligations to executive staff and elected officials. We also can consult on how to position your plan and benefits for the upcoming national healthcare requirements. Employee Benefits & Actuarial Consulting Employee Benefits Consulting GASB 45 Actuarial Valuations Medicare 65 Plan Consulting Healthcare Reform Consulting Medicare Part D Consulting Self Funded Underwriting, IBNR and Rate Development Consulting OPEB Trust Consulting OPEB liability calculations and evaluations GASB 45 Consulting 1

4 References The following are some additional current clients who have requested our GASB 43/45 OPEB services: Ascension Parish School Board Ascension Parish Sheriff Assumption Parish School Board Avoyelles Parish Sheriff Bogalusa Parish School Board Bossier Parish School Board Bossier Parish Sheriff DeSoto Parish Sheriff Caddo Parish Caddo Parish DA Caddo Parish Sheriff Cameron Parish School Board City of Alexandria City of Covington City of New Orleans City of Slidell East Jefferson General Hospital Iberia Parish School Board Jefferson Davis Sheriff Jefferson Davis School Board Jefferson Parish Clerk of Court Jefferson Parish Sheriff Lafayette Consolidated Government Lafourche Parish Sheriff Lincoln Parish Police Jury Livingston Parish School Board Plaquemines Parish Sheriff Ouachita School Board St. Charles Parish Point Coupee Parish Sheriff Port of New Orleans Rapides Parish School Board Rapides Parish Sheriff s Office St James Parish School Board St Tammany Parish St Tammany Parish Sheriff 2

5 Team Respective Roles Scott Fontenot Lead Consultant Overall responsibility for all aspects of data collection and communication of GASB 45 valuations Mike Conefry Actuary Prepares actuarial valuations Hilary Olivera Associate Actuary Prepares and gathers information for valuation Resumes G. Scott Fontenot Lead Consultant Metairie, Louisiana-based insurance and actuarial professional Scott Fontenot serves as the Managing Director of Fontenot Benefits & Actuarial Consulting, LLC, a governmental healthcare consultancy adept at helping public and private entities in managing their employee healthcare, benefits, and retirement plans. In his executive role, Scott Fontenot oversees three offices and serves some 200 clients located throughout Louisiana, Alabama, and Florida. Prior to founding Fontenot Benefits & Actuarial Consulting in 2001, Scott Fontenot spent more than a decade working for public and private firms, handling employee benefits and healthcare underwriting, and developing expertise in governmental healthcare consulting. The recipient of a Bachelor s degree in Finance from Louisiana State University, he held account executive positions with MetLife, Inc., and Aetna Inc. before accepting a post as the Regional Director of Sales and Marketing for UnitedHealthcare of Louisiana. From 1998 to 2001, he served as the Vice President of Employee Benefits for the Willis Group before founding his own firm. At Fontenot Benefits & Actuarial Consulting, Scott Fontenot oversees a team of consultants with backgrounds in insurance underwriting, financial auditing and accounting services, and actuarial studies for such clients as healthcare providers, local city and governments, school systems, and nonprofits. The consultancy s areas of expertise include Medicare Plan 65 and Part D, other postemployment benefits (OPEB) liability, Governmental Accounting Standards Board (GASB) Statement 45, self-funded underwriting, and incurred but not reported (IBNR). In recent months, Scott Fontenot and his staff at Fontenot Benefits & Actuarial Consulting have experienced significant growth. The company opened its third office in Destin, Florida, to serve governmental clients and focus on retiree healthcare and GASB 45 compliance in northwest Florida. Michael Conefry Actuary Mr. Conefry is a manager in the firm Fontenot Benefits & Actuarial Consulting and has over thirty years of experience as an actuary and benefits consultant. His particular areas of expertise 3

6 include comprehensive pension and welfare benefit consulting for large corporate and governmental clients, as well as litigation support in a variety of areas. Mr. Conefry has extensive experience in incurred claims, reserve, and premium structure analysis involving self-insured medical plans. He has expertise on Governmental Accounting Standards Board (GASB) Statement Nos. 43 and 45 concerning Other Post-Employment Benefits (OPEB) and has conducted and is conducting actuarial valuations for numerous governmental entities pursuant to these GASB Statements. He is also certified for Medicare Part D attestations concerning actuarial equivalence of employer-sponsored prescription drug plans. Mr. Conefry often lectures before professional, governmental and business organizations and has conducted many seminars on the technical aspects of qualified plans, tax planning, actuarial pension funding concepts, and the recent issues of GASB Statements 43/45 and Medicare Part D attestations mentioned above. Mr. Conefry has been qualified as an expert witness in formal court proceedings in Louisiana Civil District Court in Orleans and St. Charles Parishes, in Webster County Circuit Court in Dixon, Kentucky, in U.S. District Court for the Middle District of Louisiana, and in proceedings of the U.S. Arbitration Association in Nashville, Tennessee. He has also served as a consultant and potential expert witness in numerous cases settled before trial in civil, state and federal courts in Louisiana, Mississippi, Virginia, Kentucky, New York, and Washington, D.C. The areas of expert testimony and consultation include calculation of and actuarial valuation of plan and individual participant pension and group welfare benefits, medical claims analysis and premium and reserve determination, insurance and annuity contract interpretation and application, plan document interpretation and application, interpretation and compliance with qualified plan aspects of the Internal Revenue Code and regulations thereunder and regulations of the Department of Labor and Pension Benefit Guaranty Corporation applicable to qualified retirement plans and other employee benefits. EDUCATION AND PROFESSIONAL MEMBERSHIPS Manhattan College, Riverdale, New York, B.S. in mathematics. Associate of Society of Actuaries. Member of American Academy of Actuaries. Enrolled Actuary. Member of American Society of Pension Actuaries and Professionals. Hilary Olivera Associate Actuary Hilary started with FBAC after graduating from the University of New Orleans in 2006 with a Bachelor of Science in Finance. Hilary is currently in the process of becoming an actuarial associate through the Society of Actuaries. 4

7 Work Plan The GASB 43/45 valuation process will follow the following process; a. Data Collection and Analysis We will gather all data and information needed to prepare the actuarial valuations. b. Rate and Experience Analysis GASB 45 requires us to actuarially separate actual cost for active, retiree without Medicare and retiree with Medicare benefits. c. Actuarial Valuation We will calculate the actuarial valuation of each of the current retiree benefits which are required under GASB 43/43 OPEB based on two separate interest return assumptions. The evaluation will take 30 days after the above a. & b. are completed. d. Present Results We will meet and present the assumptions used and the results of the actuarial valuations. e. Assist with the OPEB trust development and implementation. We have already developed a standard trust document and investment policy. We will use the approach and methodology required and illustrated in GASB Statement No. 43/ Financial Consideration The FBAC fees for the GASB 45 project as follows: Project Actuarial Valuation and Data Preparation to complete the actuarial valuation and footnotes including updates for following required years. Fee $13,000 for valuation and footnote development $3,000 Workers Compensation Valuation and footnotes ACCEPTANCE: The terms and conditions for this prposal correctly state the scope of work to be performed and are accepted by us. Accepted By: Title Date: 5