GASB Statements No. 74 and 75 have substantially revised the valuation and accounting requirements previously mandated under GASB Statements No. 43 and 45. With implementation required for plan fiscal years beginning after June 15, 2016, for GASB 74 and June 15, 2017, for GASB 75, the time is now for government entities to understand and comply with the new requirements. This article by Milliman’s Joanne Fontana reviews the Alternative Measurement Method, which is used by small government employers in lieu of an actuarial valuation, and discusses the important changes relevant to small government employers as GASB 74/75 takes effect.
New accounting rules in the United States for postemployment benefits other than pension (OPEB), first implemented in 2016, are now in effect. Successful implementation of the new rules will require an understanding of a variety of technical concepts regarding the newly required calculations.
This article by Milliman actuary Rebecca Ross explores OPEB expenses and balance sheet items. Rebecca discusses the new requirements for disclosing OPEB expense and the effect these changes will have on plan and employer financial statements.
This article is part of the Governmental Accounting Standards Board Statement 74 and 75 miniseries.
The Alternative Measurement Method (AMM) allows small government employers to use a modified approach to calculate their postemployment benefits other than pensions liabilities. In this article, Milliman consultant Joanne Fontana reviews the AMM, which is used by small government employers in lieu of an actuarial valuation. It also discusses the important changes relevant to small government employers as Governmental Accounting Standards Board (GASB) Statements No. 74 and 75 takes effect.
In this article, Milliman’s William Winningham discusses the determination of an OPEB plan’s depletion date, which is the projected point in the future (if any) when plan assets are no longer sufficient to satisfy benefit obligations. He also talks about the impact on liability calculations that would result from a conclusion that a depletion date exists.
This article is part of Milliman’s Governmental Accounting Standards Board (GASB) 73/74/75 series.
Governmental Accounting Standards Board (GASB) Statements 74 and 75 mandate changes to the way liabilities are reported on financial statements for state and local governments with other postemployment benefits (OPEB) obligations. These changes are designed to standardize the way OPEB expense is calculated and displayed in order to enhance disclosure and facilitate decision-making. There are several important dates to consider when calculating and reporting OPEB liability: the reporting date, actuarial valuation rate, and measurement date. Milliman’s Rebecca Ross provides perspective in this PERiScope article.
With Governmental Accounting Standards Board (GASB) Statements 73, 74, and 75, new accounting rules for public postretirement benefit plans in the United States are set to take effect soon. Successful implementation of the new rules will require an understanding of a variety of technical concepts regarding the various newly required calculations. In this PERiScope article, Milliman’s Michael Caparoso discusses the individual entry age actuarial cost method for the valuation of other postemployment benefits (OPEB).