GASB Publishes Other Post-Employment Benefits Implementation Guide

The Governmental Accounting Standard Board (GASB) published a Guide to Implementation of GASB Statements 43 and 45 on Other Postemployment Benefits last week. The Guide assists preparers and auditors or governmental financial statements and their advisers in implementing accounting and reporting standards recently issued by the GASB regarding healthcare and other non-pension benefits for retirees.

The Guide Answers more than 250 questions about important topics related to other post-employment benefits (OPEB), including:

  • Scope and applicability of Statements 43 and 45, including distinguishing between OPEB and other forms of employees benefits – such as compensated absences, termination benefits and pensions.
  • Actuarial issues, including the timing and frequency of actuarial valuations associated with OPEB, selection of methods and assumptions, and application of criteria related to the projections of benefits for employers that participate in community-rated plans.
  • Treatment of implicit rate subsidies that arise when retirees are insured in a group with current employees.

The Guide also includes questions, answers and expanded illustrations related to the option for certain employers and plans with small plan memberships, allowing them to apply an alternative measurement method to estimate liabilities and expenses associated with their OPEB obligations.

Statement No. 43, Reporting for Postemployment Benefit Plans Other than Pension Plans addresses accounting by plans that administer OPEB. Statement 43 will be implemented in three phases, starting with fiscal years beginning after December 15, 2005, and based on the revenues of the plan’s largest participating employer.

Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions establishes accounting and reporting requirements for state and local government employers providing OPEB. Statement 45 will also be implemented in three phases, however, implementation will not start until 2006.

The Implementation Guide is available from the GASB order department at 800-748-0659 or the GASB web site at www.gasb.org.

You may like these other stories...

Accountants without a succession plan are hurting not only themselves but their clients as well. Here are seven ways to see your practice continues after you retire—some of them are better than others.What Are Your...
In the tax world, as in the real world, there is often a "right way" and a "wrong way" to do things. This is particularly true concerning rollovers from a qualified retirement plan, like a 401(k) or...
Read more from Daniel Mazzola here.Most people – maybe even most accountants – think of Social Security as just a government retirement plan. But perhaps just as important are the survivor benefits, the payments...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.