Keenan Financial Services Announces Orange USD Funding of $95 Million Postretirement Health Benefits Trust

Business Wire, July 29, 2008

Bond Approval Meets GASB Requirements for Retiree Benefit Accrual

TORRANCE, Calif. -- Keenan Financial Services, the retirement services division of Keenan, the largest privately-held insurance brokerage and consulting firm in California, announced today that the Orange Unified School District has funded their postretirement health benefits trust with the approval of a $95 million bond. The District completed this transaction using the Futuris program, Keenan's integrated program that provides all necessary Governmental Accounting Standards Board (GASB) Statements 43 and 45 compliance elements from a single source. The trust funds will be for the exclusive purpose of paying retiree health care benefits promised to current and retired employees of the Orange USD who have accrued the benefits over their careers.

"We are committed to a proactive approach to this long-term financial obligation, and by taking this action now, we are able to provide the most cost-effective solution possible for the district," stated Jon Archibald, Chief Business Officer of the District. "The Futuris program structure, using a discretionary trustee to direct the investment of trust funds, also provides the District with a greater degree of protection from fiduciary liability. The flexibility of the program and the fact that Futuris provides all the necessary plan documentation has been of great help to the district."

The District selected the Futuris program to meet their GASB 43 and 45 obligations over two years ago. "Orange USD is one of the first California school districts to create an irrevocable trust to begin to meet their GASB 43 and 45 obligations. The district is also the first California school district to float an OPEB Bond and put the bond proceeds in an irrevocable trust," added Steve Gedestad, Executive Vice President of Keenan Financial Services.

The Orange USD bond to fund the Futuris trust was arranged through the District's program manager, Dolinka Group, a public finance and facilities planning consulting firm providing services to clients throughout the State of California. "The challenge of fully accounting for and funding retiree health care benefits is weighing heavily on public agencies across the nation," explained Benjamin Dolinka, President of the Dolinka Group. "Providing full funding for these benefits without creating a 'pay-as-you-go' system is possible through the issuance of taxable bonds that could save agencies money in the long run."

About Keenan & Associates

Keenan & Associates, headquartered in Torrance, CA, was founded in 1972. Keenan has grown to the 17th largest insurance consulting and brokerage firm in the United States. With a network of offices located throughout California and a staff of more than 650 insurance specialists, Keenan is a full service consultant and broker, dedicated to providing superior insurance products and services for public agencies and health care organizations. The company's exceptional growth is directly related to its concentration on meeting the risk management, employee benefits, workers' compensation and property and liability consulting and brokerage objectives of public entities and health care systems. For more information, visit www.keenan.com.