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* Adjusts the requirement that a defined benefit OPEB plan obtain an actuarial valuation, in light of the change allowing more qualifying employers to use the alternative measurement method.
In response, the GASB ultimately decided to offer smaller employers and plans (i.e., fewer than 100 total active employees, retirees, and other beneficiaries) the option of using an alternative measurement method that would eliminate the need for an actuarial valuation.
An alternative measurement method, for a sole employer with fewer than 100 members, uses a simplified actuarial valuation method that non-specialists can use.
In addition, the guide includes questions and answers and expanded illustrations related to the option provided for certain employers and plans with small plan memberships, allowing them to apply an alternative measurement method to estimate liabilities and expenses associated with their OPEB obligations.
The objective of this Statement is to address issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (OPEB) plans (that is, agent employers).
The GASB, however, proposes to allow employers with fewer than 100 plan members to use simplified assumptions that should make it possible for individuals other than actuaries to perform the required calculations (i.e., alternative measurement method).
A sole employer in a plan with fewer than one hundred total plan members (including employees in active service, terminated employees who have accumulated benefits but are not yet receiving them, and retirees and beneficiaries currently receiving benefits) has the option to apply a simplified alternative measurement method instead of obtaining actuarial valuations.
Amongst the possible alternative measurement methods are for example photography, movie, or a smartphone based application [2-7].
In addition to alternative calibration techniques, there are alternative measurement methods that have been used for adapter extraction:
[5] While in principle the complete definition of the measurand requires an infinite amount of information, in practice it usually contains detailed information appropriate for a particular (usually conventional) measurement method and may be significantly incomplete if alternative measurement methods are used.
Given that in most cases the alternative measurement methods differ radically from those officially employed it is perhaps remarkable that, overall, the discrepancy should be no greater than this.
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