Governments have already started their 2018 fiscal year. Governments that offer Other Post-Employment Benefits (OPEB) must now plan for Governmental Accounting Standard No. 75 (GASB 75). The new GASB statement is effective for fiscal years beginning after June 15, 2017, though some entities may have adopted early.
Until the 2018 fiscal year, GASB 45 governed OPEB reporting, and that reporting was confined to the financial statement footnotes and supplementary information. Under GASB 75, the overall effect will be similar to GASB 68 for pensions:
- The balance sheet must recognize any unfunded liability.
- Annual expense is the change in unfunded liability, with some pieces reflected as deferred inflow/outflow. This annual expense is the successor to the Annualized Required Contribution (ARC).
- Extensive disclosures and supplemental information (more than for pensions) must be presented.
Margaret A. Lacek, EA, FSA, FCA, MAAA
Senior Consultant and Actuary
Phone: (412) 394-9952
Email: [email protected]