Tag: accounting

by Mark Schulte Tagged , , , , , , Leave a comment on First pensions, now OPEB – New GASB 74 & 75 will transform OPEB reporting

First pensions, now OPEB – New GASB 74 & 75 will transform OPEB reporting

Public sector employers, get ready! The Governmental Accounting Standards Board (GASB) has officially approved new accounting statements for Other Post-Employment Benefit plans (OPEB; retiree medical). Here’s what the recent GASB announcement confirms: Final provisions will closely mirror GASB 67/68 pension accounting. The official statements won’t be released until late June, but last summer’s OPEB exposure […]Read More… from First pensions, now OPEB – New GASB 74 & 75 will transform OPEB reporting

by Mark Schulte Tagged , , , , , , , 1 Comment on Higher Discount Rates Will Help 2013 Pension Disclosures and 2014 Expense

Higher Discount Rates Will Help 2013 Pension Disclosures and 2014 Expense

The final results are in and pension plan sponsors should be pleased with final year-end discount rates – at least compared to the FY2012 rates. Using the Citigroup Pension Liability Index (CPLI) and Citigroup Pension Discount Curve (CPDC) as proxies, pension accounting discount rates are up by about 90 basis points this year. This is […]Read More… from Higher Discount Rates Will Help 2013 Pension Disclosures and 2014 Expense

by Mark Schulte Tagged , , , , , , , , , Leave a comment on Pension Discount Rates – September 2013 Preview

Pension Discount Rates – September 2013 Preview

After several years of painfully-low pension discount rates, we’ve seen a modest rebound in 2013. Using the Citigroup Pension Liability Index (CPLI) and Citigroup Pension Discount Curve (CPDC) as proxies, pension accounting discount rates are up by about 80 basis points so far this year. This is great news for pension plan sponsors, especially if […]Read More… from Pension Discount Rates – September 2013 Preview

by Mark Schulte Tagged , , , , Leave a comment on Expect Lower Discount Rates (and Higher Liabilities) for 2012 Pension Disclosures

Expect Lower Discount Rates (and Higher Liabilities) for 2012 Pension Disclosures

Pension discount rates continued to drop during 2012 and plan sponsors should prepare for yet another potential upward spike in balance sheet liabilities for the fiscal year ended December 31, 2012. Using the Citigroup Pension Liability Index (CPLI) and Citigroup Pension Discount Curve (CPDC) as proxies, pension accounting discount rates may decrease by roughly 35 […]Read More… from Expect Lower Discount Rates (and Higher Liabilities) for 2012 Pension Disclosures

by Mark Schulte Tagged , , , , Leave a comment on Low Pension Discount Rates = Big Accounting Liabilities for FY2011

Low Pension Discount Rates = Big Accounting Liabilities for FY2011

Pension discount rates have plummeted over the past few months and plan sponsors should prepare for a potential upward spike in balance sheet liabilities for the fiscal year ended December 31, 2011. Using the Citigroup Pension Discount Curve (CPDC) as a proxy, pension accounting discount rates could decrease by 100 basis points (or more). This […]Read More… from Low Pension Discount Rates = Big Accounting Liabilities for FY2011

by Mark Schulte Tagged , , Leave a comment on Pension Liability Primer

Pension Liability Primer

Here’s a link to a presentation I gave to an accounting firm and some of their clients yesterday. It is geared towards plan sponsors and gives a high-level overview of the basis for calculating pension liabilities. The presentation also reviews and compares various pension liability results so that plan sponsors can better understand what all […]Read More… from Pension Liability Primer