Tag Archives: GASB 75

GASB 74/75: Impact on small government employers

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.

GASB 74/75: OPEB expense and balance sheet items

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. 

Implementing GASB 75 rules

In 2016, new Governmental Accounting Standards Board (GASB) rules were implemented for postemployment benefits other than pensions (OPEB). Other rules are scheduled to go into effect this year.

Successful implementation of the new rules requires an understanding of various technical concepts related to newly required calculations. In this PERiScope article, Milliman’s Tim Herman discusses the allocation of financial reporting liabilities and expenses for cost-sharing multiple-employer OPEB plans under GASB 75.

This article is part of Milliman’s Governmental Accounting Standards Board (GASB) 73/74/75 series.

GASB 74/75: Impact on small government employers

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.

GASB 74/75: Depletion date projections

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.

GASB 73/74/75: Timing considerations for compliance with new financial reporting rules

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.