Actuarial Estimates for Retired Pay and Medical Benefits
This report provides the study results of the U.S. Coast Guard actuarial model for estimating liabilities for retired pay and medical benefits. The study was conducted by the Hay Group, under contract with the Office of Inspector General, as part of our audit of the Department of Transportation Fiscal Year (FY) 1999 Consolidated Financial Statements.
The principal objective of the study was to determine whether the methodology used by the Coast Guard contractor to calculate liabilities and annual actuarial activity of the Coast Guard military retirement system was reasonable and reliable as of September 30, 1998. FY 1998 data are used because the data represent the most current full year of financial data for estimating FY 1999 pension liabilities totaling $20 billion.