- Home
- Multiemployer Services
- Health and Welfare Benefits
- Budgeting/Financials
Budgeting/Financials
Proper budgeting and financial monitoring is key to sustaining a multiemployer fund. Segal is able to help trustees with the following services:
- Preparing a financial experience and benefit projections (FEBP) report, including a review of three-year income and expense projections
- Projecting claims
- Developing required contribution and COBRA rates
- Performing incurred-but-not-reported (IBNR) calculations required for retiree health accounting and self-funded plans
- Analyzing the impact of proposed plan design changes
- Underwriting and funding methodology
- Creating budget and renewal projections
- Preparing annual health benefits reports
- Determining pricing for flexible benefits
- Conducting merger studies
- Analyzing the development of health care purchasing coalitions
- Reviewing domestic partner benefits/imputed income
- Creating and/or update financial reports including information on per member per month (PMPM) costs and plan cost drivers
- Preparing a 92-06 SOP actuarial valuation report and assessing its implications for plan funding
Reserves
In addition to establishing a cushion to fall back on during unfavorable financial periods, there are many good reasons to set aside reserves, including:
- Reimbursement of claims that participants have incurred but not yet submitted to the plan
- Unexpected claims fluctuations
- Shortfalls of expected income
- Management of cash flow
- Potential future expenses based on the plan's eligibility provisions and/or design features
- The plan's postretirement benefit obligation, if any
- Changing demographics
- External events, such as delinquencies by contributing employers or labor-management disputes
Segal can assist in reviewing the fund's reserve policy or developing a policy if one is desired. We can also evaluate the fund's current target reserve levels and evaluate whether the fund is at risk for insolvency.