Copyright© 2004 by School Services of California, Inc.

Volume 17                   For Publication Date: December 17, 2004             No. 24

Ask SSC . . .

Can We Continue to Allocate Retiree Benefit Costs by FTE?  

Q.        Based upon the results of our most recent actuarial study, our district has already established an amount per full-time equivalent (FTE) [benefit eligible] that we have been allocating to all applicable funds and programs (restricted and unrestricted). Can we continue to use this method?  

A.        Yes. The percentage method is the most frequently used, but an allocation method based on a flat dollar amount per FTE is an allowable alternative. In order to determine a flat dollar amount per FTE, the first step is to have an actuarial study completed to determine a base for the school agency’s future obligation.

—Michele Huntoon, CPA