Long Beach Community College District Becomes First to Select Keenan's Futuris -- Comprehensive GASB Compliant Retiree Health and Welfare Benefit Program.

TORRANCE, Calif. -- Keenan, the largest privately held brokerage and consulting firm in California, today announced that Long Beach Community College District has become the first community college to select Keenan's Futuris solution as a proactive approach to both control and meet the fiduciary responsibility for future retiree benefit costs. Futuris, which has gained rapid market interest since it was introduced in August 2005, is a comprehensive actuarial, consulting, cost management, plan documentation and investment program that provides all necessary Governmental Accounting Standards Board (GASB) 43 & 45 compliance elements from a single source, while assisting with the public agency's fiduciary liability.

Steve Gedestad, executive vice president of Keenan, says, "Futuris is expected to be managing retire health and welfare benefits representing more than $350 million in assets for public employees and retirees statewide by the end of 2006. As the July 1, 2006 deadline for GASB compliance approaches, we believe that the Futuris solution will be adopted as the preferred approach to financially recognize and manage school districts, community colleges, and government entities liabilities for retiree health and welfare benefits."

Eloy Oakley, executive vice president of administrative services for Long Beach Community College District, says, "We selected Keenan's Futuris solution to address the needs of our employees and retirees. The structure of Futuris comprehensively addresses our fiduciary responsibility."

Adds Oakley, "We have already set aside $4 million to initiate funding, and we estimated our fully funded liability to be about $29 million. We are well on our way to providing the security our employees and retirees deserve, and meeting our compliance obligations."

Keenan has received the endorsement of the Statewide Association of Community Colleges (SWACC) for the Futuris solution. According to SWACC president Tom Fallo, "Keenan has demonstrated expertise and preparedness in developing Futuris as a comprehensive program to address the GASB 43 and 45 standards for our Community Colleges. Members of The Statewide Association of Community Colleges (SWACC) voted their endorsement of the Futuris program for SWACC members, in recognition of Keenan's full-service, educational and technical approach toward public institutions' retiree health and welfare benefit liabilities."

Keenan surveyed more than 1,000 public school districts and 600 local government agencies, transit authorities, and special districts in California to assess their needs and preparedness before developing Futuris. Although 89 percent of public agencies surveyed provide retiree health benefits, nearly three out of five don't know the magnitude of their future financial commitment to provide these benefits. Two-thirds of the organizations had not set aside any funds toward the liabilities. Among those that have begun to fund future retiree benefits, the amount set aside represents less than 10 percent of the liability accrued.

About Keenan

Founded in 1972, Keenan is the 17th largest insurance brokerage and consulting firm in the United States, and the largest independent broker in California. Keenan is dedicated to providing superior insurance products and services to schools, community colleges, municipalities, and healthcare organizations that include employee benefits, third-party claims administration, workers' compensation, integrated disability, risk management, and property and liability. Keenan has a network of offices located throughout California and a staff of more than 600 insurance specialists. For more information about Futuris, call your local Keenan representative or Steve Gedestad at 1.800.654.8102, 1.310-212-3344 or email [e-mail]. Visit our web site at www.keenan.com/Futuris.