1. TPMA MEMPHIS2007 HOW TO AFFORD OTHER POST EMPLOYMENT BENEFITS

2. HOW TO AFFORD GASB 45AND GASB 43 OTHER POST EMPLOYMENT BENEFITS (OPEB)

3. OTHER POST EMPLOYEE BENEFITS ARE: ALL RETIREE BENEFITS THAT ARE NOT PART OF A PENSION PLAN RETIREE HEALTHCARE IS ALWAYS AN OPEB

4. PENSION PLANS GUIDANCE IS ESTABLISHED UNDER: GASB 25 GASB 26 GASB 27 PRIMARILY PROVIDE RETIREMENT INCOME BUT COULD HAVE INSURANCES

5. AFFORABILITY ISSUES • COST CONTAINMENT • COST MINIMIZATION • COST AVOIDANCE

6. COST CONTAINMENT • USE OF HMO (reduces the # of hospital visits) • SOME TYPE OF MANAGED CARE • HIGHER DEDUCTIBLES • CO-PAYMENTS • BUT CONSUMER PAYS MORE

7. COST MINIMIZATION • FIXED EMPLOYER CONTRIBUTIONS • VERSUS • DEFINED BENEFIT CONTRIBUTIONS

8. COST AVOIDANCE • WELLNESS PROGRAM • REQUIRE POST OFFER PHYSICALS • REQUIRE ANNUAL PHYSICALS

9. STRATEGIES TO CONTROL COSTS

10. CRITIQUE CURRENT BENEFIT PROGRAMS

11. CHANGE BENEFITS AS NEEDED

12. REDUCE OPEB’S TO NEW EMPLOYEES

13. CAP EMPLOYER PROVIDED BENEFITS

14. CHANGE FROM DEFINED BENEFIT TO DEFINED CONTRIBUTION

15. MANAGE ALL ASPECTS OF HEALTH INSURANCE

16. STOP PAYING HEALTH INSURANCE COSTSAFTER RETIREE IS MEDICARE ELIGIBLE

17. CONSIDER A CATASTROPHIC ILLNESS PLANWITH A HIGH DEDUCTIBLE

18. AND A SUPPLEMENTAL PLAN TO COVER EXPENSES UP TO THE HIGHDEDUCTIBLE

19. CONSIDER AHEALTH SAVINGS ACCOUNT(HSA)FOR A SUPPLEMENTAL PLAN

20. HSA’S BECAME EFFECTIVE 1/01/2004HSA’S MUST HAVE A MINIMUM $1,000 INDIVIDUAL DEDUCTIBLE

21. HSA’S LIMIT EMPLOYEE CONTRIBUTIONBUT EMPLOYER MAY CONTRIBUTE

22. ADVANCE FUNDING OF OPEB • CREATES AN ASSET BASE • OFFSETS OPEB LIABLITIES • ASSETS INCREASES WITH INTEREST EARNINGS • ISSUE NON-TAXABLE DEBT • USE A TRUST • ARBITRAGE