{"id":1346,"date":"2015-06-03T12:18:14","date_gmt":"2015-06-03T17:18:14","guid":{"rendered":"http:\/\/pensionblog.com\/?p=1346"},"modified":"2015-06-03T12:18:14","modified_gmt":"2015-06-03T17:18:14","slug":"first-pensions-now-opeb-new-gasb-74-75-will-transform-opeb-reporting","status":"publish","type":"post","link":"https:\/\/viaactuarial.com\/2015\/06\/03\/first-pensions-now-opeb-new-gasb-74-75-will-transform-opeb-reporting\/","title":{"rendered":"First pensions, now OPEB \u2013 New GASB 74 &#038; 75 will transform OPEB reporting"},"content":{"rendered":"<p>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\u2019s what the recent GASB announcement confirms:<\/p>\n<ul>\n<li style=\"margin-bottom: 10px;\">Final provisions will closely mirror GASB 67\/68 pension accounting. The official statements won\u2019t be released until late June, but <a title=\"Top 5 Take-Aways from the GASB OPEB Accounting Exposure Draft\" href=\"https:\/\/vaniwaarden.com\/2014\/06\/18\/top-5-take-aways-from-the-gasb-opeb-accounting-exposure-draft\/\" target=\"_blank\" rel=\"noopener\">last summer\u2019s OPEB exposure draft<\/a> included similar provisions such as:\n<ul>\n<li style=\"margin: 10px;\">The unfunded liability will now go on the balance sheet.<\/li>\n<li style=\"margin: 10px;\">The liability discount rate will be based on a projection of how long dedicated assets (plus future contributions) will cover current plan members\u2019 future benefit payments.<\/li>\n<li style=\"margin: 10px;\">OPEB expense will recognize asset and liability changes over a shorter time period.<\/li>\n<li style=\"margin: 10px;\">Goodbye ARC! Funding and accounting are officially separated, so plans and employers should consider developing a new OPEB funding policy.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin: 10px;\">Expanded note disclosures and RSI are required, including sensitivity of results to a +\/-1% change in the discount rate and medical trend assumptions.<\/li>\n<li style=\"margin: 10px;\">Effective dates:\n<ul>\n<li style=\"margin: 5px;\"><strong>GASB 74 Plan accounting<\/strong> is first effective for reporting periods beginning after June 15, 2016 (e.g., fiscal years beginning July 1, 2016 or January 1, 2017).<\/li>\n<li style=\"margin: 5px;\"><strong>GASB 75 Employer accounting<\/strong> is first effective for reporting periods beginning after June 15, 2017 (e.g., fiscal years beginning July 1, 2017 or January 1, 2018).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Although the implementation dates are almost 3 years away, employers should take action now to prepare. Some questions to ask include:<\/p>\n<ol>\n<li style=\"margin: 10px;\"><strong> How can I develop and implement an OPEB funding policy over the next few years?<\/strong> Prefunding OPEB can help reduce the unfunded balance sheet liability.<\/li>\n<li style=\"margin: 10px;\"><strong> What plan benefit adjustments and investment policy changes are available to lower my long-term OPEB liability? <\/strong>Now is the time to review your OPEB management strategies.<\/li>\n<li style=\"margin: 10px;\"><strong> What is my strategy to educate stakeholders about OPEB promises and their potential financial impact under the new GASB 74\/75 requirements? <\/strong>OPEB is a complex topic that may be unfamiliar to plan members, government decision-makers, and taxpayers.<\/li>\n<\/ol>\n<p>The new GASB 74\/75 statements should help make OPEB promises more understandable and transparent. While there\u2019s still sufficient lead-up time, employers should view this as an opportunity to proactively address an employee benefit which is often unfunded but must be managed prudently.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s what the recent GASB announcement confirms: Final provisions will closely mirror GASB 67\/68 pension accounting. The official statements won\u2019t be released until late June, but last summer\u2019s OPEB exposure [&#8230;]<a class=\"understrap-read-more-link\" href=\"https:\/\/viaactuarial.com\/2015\/06\/03\/first-pensions-now-opeb-new-gasb-74-75-will-transform-opeb-reporting\/\">Read More&#8230;<span class=\"screen-reader-text\"> from First pensions, now OPEB \u2013 New GASB 74 &#038; 75 will transform OPEB reporting<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,16,22],"tags":[35,72,73,74,15,79,19],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>First pensions, now OPEB \u2013 New GASB 74 &amp; 75 will transform OPEB reporting - Via Actuarial Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/viaactuarial.com\/2015\/06\/03\/first-pensions-now-opeb-new-gasb-74-75-will-transform-opeb-reporting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"First pensions, now OPEB \u2013 New GASB 74 &amp; 75 will transform OPEB reporting - Via Actuarial Solutions\" \/>\n<meta property=\"og:description\" content=\"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\u2019s what the recent GASB announcement confirms: Final provisions will closely mirror GASB 67\/68 pension accounting. 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