Frequently Asked Questions
One of the goals of the Questar III GASB 75 team is to provide clear and timely answers to your questions. In order to do so, we have created a list of the most Frequently Asked Questions that come across our desks. Of course, feel free to call or e-mail any member of the team with any questions or concerns that you may have.
Questions regarding Census data
Which tab do we put retirees who have returned to work?
Retirees who have returned to work will remain on the retiree tab because they are already collecting Other Post-Employment Benefits. The only people who should be on the actives tab are those employees who are currently working towards OPEB at retirement.
Should I include Medicare Part B reimbursement in the premiums on the census data?
No, the medical premiums on the census data should only include medical. Medicare Part B reimbursements and credits are separate and are calculated differently. We will need to know about these, however, they should be included on your plan provisions and premiums sheet, and in column Q (Medicare B Reimbursement amount) of the retiree tab of the census spreadsheet.
On my plan provisions, does Medicare Part B mean that the retirees receive coverage or reimbursement?
For the purpose of this report, on your plan provisions, if you state that your retirees receive Medicare Part B that should mean that they receive Medicare Part B reimbursement.
Is it important for me to label the type of coverage my retirees have?
Yes, please label whether your retirees have Individual coverage (I), Individual Medicare coverage (M), Two Person Medicare coverage (2M), Family coverage (F), or One over 65 and One under 65 coverage (F1M1). This helps us give you the most accurate report and estimated liability as possible. It will also help mitigate any questions and can potentially reduce the time it takes us to review your data.
Do I need to include the percent contributions for my retirees and their dependents, as well as their total monthly premiums and monthly contributions?
Yes, we use this information to confirm the data that we have received and to make sure that we are valuing the correct information. As always, there is a team available to answer any questions and assist with data.
What is needed for Questar III BOCES to begin working on my district’s GASB 75 Full Valuation report?
We would need all the required information (Census, Premiums, and Plan Provisions) before we can begin working on your Full Valuation report. We would also need a cross-contract that has been signed by your district’s superintendent and your local BOCES.
Should I always include gender on my census data?
Yes. For actuarial assumption purposes, we will need to know if the active employee or retiree is male or female.
Do you need my active employees or retiree’s social security numbers?
No. Questar III will never ask for social security numbers. For security purposes, we ask that you refrain from sending us any document that contains social security numbers. We will also never ask for Medicare ID numbers. For the security of your retirees, we ask that you do not send us Medicare ID numbers with your census data.
Do we have to use the census template you send us?
We highly recommend that you use the template that we provide your district. The census template contains the most accurate and up-to-date information. Utilizing the template will also mitigate the number of questions we ask about your data.
Do you need information about surviving spouses?
Yes, but only if surviving spouses are offered any type of coverage. Please provide this information even if the surviving spouses are responsible for 100% of their medical coverage. We will also need to know if surviving spouses are eligible for Medicare Part B coverage, Dental, and/ or Vision.
What date should my census data be pulled as of?
Census data should always be pulled as of July 1st of the most recent fiscal year. For example, if the report is for the 2016-2017 fiscal year, and you are pulling the report in October, your report should be as of July 1st, 2016.
Questions regarding the GASB 75 Report
What is the main difference between a Full Valuation Report and a Disclosure Report?
GASB 75 requires a Full Valuation Report every other year. Therefore, each year you will either be in a Full Valuation year or a Disclosure only year. The main difference is that for a Full Valuation Report we use your census data and other supporting documents to establish a new Total OPEB Liability. For the Disclosure Report we roll forward your Total OPEB Liability from the previous Full Valuation.
Why is there a GASB 75 liability associated with the Cadillac Tax?
There are a few reasons for this. While the Cadillac Tax does not take effect until 2022, we need to remember that for GASB 75 we are looking at the entire lifespan of current retirees and future retirees. Therefore, many current retirees and future retirees will live beyond the year 2022.
You may also note that currently, the Cadillac Tax thresholds tend to be below the premiums of most medical plans implemented by New York State school districts. However, we have to take into account that the Medical Trend we apply to the medical premiums will always be higher than the Cadillac Tax Trend. Therefore, at some point in the future, there is a chance that the medical premiums will exceed the Cadillac Tax thresholds, resulting in the 40% excise tax applied to that difference.
What is the Implicit Rate Subsidy?
GASB 75 rules require the valuation for the Implicit Rate Subsidy. The Implicit Rate Subsidy values the gap between the actual premiums of Pre-65 Retirees and what their Per Capital Cost is. It is based on the principle that Pre-65 Retirees should actually be paying higher premiums than the Pre-65 Active population.
Why don’t the Participant Counts on the GASB 75 Report match the counts provided by the district?
There are many possible reasons for this. During the “scrubbing process,” the Questar III BOCES GASB 75 team meticulously cleans the data received from the district. In doing so, individuals may be deleted from the Census. This occurs for various reasons, but an example would be if an individual was hired after the Actuarial Valuation date, that individual would be deleted, or if an individual is not eligible for OPEB at retirement, that individual would also be deleted.