Self Insured Plans, LLC
14710 Tamiami Trail N, Ste 201
Naples, FL 34110


What We Do

Today's challenging healthcare environment demands new, more effective solutions to stem rising costs. Self Insured Plans works to keep healthcare plan expenses in line and quality care at the forefront. Whether your organization is large or small, we can help create a highly effective self-funded strategy that will control costs, keep you better informed and support happier, healthier employees.

An Overview of GASB 43/45

Employees of State and local governmental entities are compensated for their services in the form of salary but also may be compensated in the form of post-retirement benefits. While the most common post-retirement benefit is pension, other post-employment benefits (OPEB) may include health, dental, vision or life insurance benefits. Typically, these OPEB benefits are funded on a “pay as you go” basis, with the governmental entity paying only an amount each year equal to the benefits claimed in that year. Unfortunately this “pay as you go” methodology results in the governmental entity understating and not fully reporting the full cost of the OPEB benefits earned by their employees each year.

The Governmental Accounting Standards Board (GASB) establishes accounting standards for governmental agencies, but has no enforcement power. Entities that fail to follow GASB can be subject to audits and could suffer damage to their bond ratings.

In 2004 GASB issued two statements; GASB 43 and GASB 45, which outlined the accounting, reporting and disclosure requirements for post employment benefits other than pensions (OPEB’s). GASB 43 dealt with plans that provided OPEB’s through trusts and GASB 45 outlined the OPEB reporting and disclosure requirements for governmental employers. These GASB statements will substantially increase the expenses and liabilities reported on the financial statements of many governmental entities.

According to GASB, the “pay as you go” approach does not reflect the governmental entity's true OPEB liabilities since it does not reflect the cost of the OPEB’s earned by active employees during their working years. GASB's new statements seek to recognize OPEB expenses when the benefits are earned (accrual based accounting) rather than when they are paid out (cash basis).

The GASB statement deals exclusively with issues of disclosure and financial reporting and does not require that the liability be pre-funded. Governmental entities are free to continue funding their OPEB's on a "pay as you go" basis. However, reporting a substantial unfunded liability on the income statement may have a substantial impact on credit and bond ratings. While it is impossible to predict the public’s perspective of a published, large unfunded OPEB liability, it can reasonably be assumed that the public may have a jaundiced opinion of the scope of the unfunded liability and the entire issue of broad based governmental retiree OPEB benefits. Therefore, it is recommended that most governmental entities should develop liability mitigation strategies.

The following chart outlines the GASB implementation schedule. (Annual Revenues are based upon your Fiscal Year immediately following 6/15/1999.) Smaller employers with less than 100 employees are subject to the GASB statements, but may utilize an alternative or “express” method for calculating their liability.

Annual Revenues First Fiscal Year After: First Fiscal Year After:
  GASB 43 Plans GASB 45 Employers
$100 Million + 12/15/05 12/15/06
$10 to $100 Million 12/15/06 12/15/07
Under $10 Million 12/15/07 12/15/08


Our value proposition to our governmental customers is that we are able to provide an integrated solution. We will provide consulting services, actuarial evaluations, plan design strategies, funding strategies and an appropriate trust vehicle, all integrated with a state of the art eligibility and claims reimbursement system, linked, real time, with your investment vehicle.

GASB 43/45 Services

Our goal is to provide a seamless process that integrates all of the following services into a single cost-effective GASB solution. Due to our size, we have the ability to provide personalized service to meet your needs as well as the expertise to provide solutions for the most complex situations.

  • Actuarial Valuation. We will prepare an actuarial valuation in compliance with GASB statement No. 45. The actuarial valuation will outline your "other post-retirement benefit" (OPEB) obligation for eligible active employees and current retirees, along with related information like the Annual Required Contribution (ARC). The valuation will be based on employee and retiree census data you provide, and on the benefit descriptions you provide.
  • Alternative Method Actuarial Valuation. Governmental entities with fewer than 100 employees may be eligible for the alternative OPEB calculation. We have prepared a template to allow you to easily submit your plan provisions and data, which we will then use to calculate your OPEB obligations and Annual Required Contribution (ARC).
  • Plan Design, Funding and Liability Mitigation Consulting. Once the OPEB liability is determined, we will explore plan design options that best meet your long-term goals. Exploring defined benefit plan modification alternatives, defined contribution alternatives, pay as you go and other financing alternatives, we will work with you to find the delicate balance between fiscal responsibility and protecting the integrity of the OPEB plan.
  • Pre-Funding Options. Pre-funding all or a portion of the OPEB liability can allow the governmental entity to allocate funds for future OPEB costs. This is often accomplished wih a trust vehicle, usually a Section 115 Integral Trust or a section 501(c)(9) VEBA Trust. If a trust is appropriate, we will provide the Trust Document and Adoption Agreement as a standard part of our package.
  • Integrated Enrollment, Eligibility, Billing and Claims Processing. Irrespective of whether the ultimate OPEB solution calls for the use of an Insurer, HMO, Self-Funding or a HRA, we will provide an administrative solution that is linked, real time, to the investment option chosen, including a comprehensive reporting package.

To learn more about GreatGASB Services & Solutions, click to contact Self Insured Plans.

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