Actuarial Services - Other Post Employment Benefit Analysis (OPEB)

The City of Tarpon Springs is seeking a qualified actuarial services firm to conduct Other Post Employment Benefits (OPEB) analysis through a Request for Proposals (RFP) released on October 1, 2025, with proposals due by October 30, 2025, at 3:00 P.M. local time. The five-year contract, with an optional one-year renewal, will require comprehensive actuarial valuation services for OPEB, including calculating the cost of benefits, recognizing OPEB expense, projecting future benefit payments, determining present value of projected benefits, and providing total OPEB liabilities per fund for fiscal years 2026, 2028, and 2030, with updates for 2027 and 2029. The selected firm must demonstrate expertise in OPEB analysis, with the city's evaluation committee using a points-based system to assess proposals across four key criteria: Experience, Capacity and Qualifications (35 points), Plan/Technical Approach (35 points), Schedule (10 points), and Cost (20 points). The city currently has 351 full-time employees and 16 retirees, with a unique situation where they pay 100% of health insurance premiums for active employees but no premiums for retirees. Proposals must be submitted electronically through Euna Procurement Solutions/Bonfire platform, with the city operating on an annual budget of approximately $86,000,000.

The RFP does not explicitly specify set-aside designations or restrictions for disadvantaged enterprises. The current OPEB analysis is provided by Jefferson Solutions, Inc., who prepared the most recent GASB 75 Report for fiscal years 2023 and 2024, which revealed a total OPEB liability of $2,902,719 as of September 30, 2024. The city currently funds retiree health benefits on a pay-as-you-go basis without pre-funding through a trust, using various actuarial assumptions including a 3.81% discount rate and healthcare cost trend rates that start at 7.00% and ultimately reach 4.54% by 2090. The city has budgeted $6,000 annually for this project, and the insurance infrastructure is currently managed through Florida Municipal Insurance Trust (FMIT) and UnitedHealthcare, with a comprehensive benefits package that includes medical, dental, vision, life, and disability insurance options. The health insurance premiums for active employees total $452,696.77 monthly, with an additional $17,038.92 for retiree coverage, demonstrating the complexity of the OPEB analysis required.