In 2012, the Governmental Accounting Standards Board (GASB) released new rules for the accounting of public pension plan liabilities for plans and employers. The new rules, GASB Statements 67 and 68, will begin to take effect in the latter half of 2014 for some plans, depending on plan fiscal year dates.
To assist in the implementation of the new standards, particularly from an actuarial perspective, Milliman has convened a GASB task force. One of the main purposes of the task force will be to publish a mini-series of technical articles covering the various aspects of the new rules.
This mini-series began with a January kick-off article entitled “GASB 67/68: Beginning implementation and overview.” The initial article provides a high-level view of the major requirements of the new statements. Subsequent articles will address in detail the various finer points of calculation and reporting.
Future technical articles will include:
• Relationship between valuation date, measurement date, and reporting date
• Depletion date projections
• Long-term expected investment returns and the money-weighted rate of return
• Specifics of cost-method calculations and recognition of deferred inflows/outflows
• Substantively automatic plan provisions
• Balance sheet items and projection from valuation date to measurement date
• Calculation of pension expense
• Proportionate share calculations
• Special funding situations
Additionally, the task force will maintain a frequently asked questions (FAQ) document to address common points of inquiry. Look for all these resources at http://www.milliman.com/GASB6768, or contact your local Milliman consultant for more information regarding implementation.