BEST PRACTICES: OPEB Governance and Administration Flashcards
Sponsoring governments should establish a clear, well-documented governance structure to guide governing bodies and plan administrators.
What is recommended for sponsoring governments of OPEB plans regarding governance?
To establish a clear, well-documented governance structure to guide governing bodies and plan administrators.
What should this governance structure clearly delineate?
The governance responsibilities of fiduciaries and plan administrators in a comprehensive manual and the appropriate plan and trust documents.
Why is it important to keep plan documents current and reflective of the substantive plan?
To avoid legal issues regarding variations between the substantive plan and the official plan documents.
What type of document should participants be provided with that describes plan benefits?
A summary plan description that includes benefits, vesting period, and significant features of the plan.
What records must be maintained for effective administration of the OPEB plan?
Participant and beneficiary names, demographic information, and dates important for vesting and Medicare eligibility, among others.
What should a comprehensive policy and procedures manual include for OPEB governance and administration?
Current plan documents, policies and procedures regarding governance, administration, and legal compliance, as well as training guidelines for fiduciaries and staff.
Who should perform periodic valuations to determine the financial impact of plan or trust funding changes?
An actuary hired by the plan sponsor, trust governing body, or the plan administrator.
What is the importance of funding the Actuarially Determined Contribution fully every year?
It’s crucial for the financial stability and sustainability of the plan.
How can administrative costs for OPEB plans be kept as low as possible?
By periodically reviewing services and purchases, conducting eligibility and death audits, and considering the combination of administrative activities to lower costs.
What procedures should be developed to ensure continuity of administrative services in the event of disruptions?
Develop, implement, and regularly test procedures to continue providing administrative services during service disruptions.
