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Financial Reporting for Post Employment Benefit Plans Other Than Pension Plans No. 43

(Effective Date: Plan year prior to effective date of GASB 45, if applicable)

• Applies to all governmental pension plans.
• Purpose is to require the identification and disclosure of the accrual of liabilities of other post employment benefits (OPEB) generally over the working career of member
• Current accounting and funding approach has been on a pay-as-you-go basis.
• Under this method, the OPEB liability would be actuarially determined and funded similar to pension funds.
• Establishes uniform financial reporting standards for plans.
• Provides instructions for calculating expenses and liabilities.
• Requires supplementary information schedules.

Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions No. 45

(Effective Date: Phased in beginning after Dec 15, 2006 (FY 2008))

• Applies to all public employers who follow GAAP and offer post employment Benefits other than pensions.
• Purpose is to require the identification and disclosure of the accrual of liabilities of other post employment benefits (OPEB) generally over the working career of member.
• Current accounting and funding approach has been on a pay-as-you-go basis.
• Under this method, the OPEB liability would be actuarially determined and funded similar to pension funds.
• Establishes uniform financial reporting standards for employers.
• Provides instructions for calculating expenses and liabilities.
• Requires supplementary information schedules.

Financial Reporting for Defined Benefit Pension Plans Statement No. 25

(Effective Date: July 1, 1996 (FY 1997))

Annual required employer contribution (ARC) must be actuarially-determined in accordance with the following parameters:

• Actuarial value of plan assets should be related to market value
• Actuarial present value of total projected benefits should include all benefits to be provided, including cost-of-living-adjustments
• Any generally-accepted actuarial cost method, including entry age normal, may be used
• 40 year maximum amortization period for unfunded liability for the ten year period July 1, 1996 to July 1, 2006
• 30 year maximum amortization period for unfunded liability effective July 1, 2006
• Any significant decrease in unfunded liability resulting from a change in actuarial methods may be amortized over no less than ten years
• Assumed rate of overall payroll growth must be based on an assumption of no growth in the number of system members
• Required schedule of ARC, and actual employer contributions, for six prior fiscal years