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New Changes to GASB Pension Reporting

CSDA Legislative Highlight

Thursday, July 5, 2012

The changes contained in Statement No. 67, Financial Reporting for Pension Plans, replace previous reporting standards for the majority of public employee pension plans. Changes in Statement No. 68, Accounting and Financial Reporting for Pensions, establish new accounting and financial reporting requirements for government employee pensions. Both measures intend to increase transparency and improve the way governments calculate and report pension costs and obligations.

GASB's statements affect pension costs and obligations measured and reported in audited external reports, but do not require governments to report how they approached pension plan funding. The new guidance imposes a decided shift from the funding based approach to an accounting based approach. These changes come after a reexamination of current practices in which GASB concluded that opportunities for improvement existed in the way pension disclosures are conducted. To find a more in-depth synopsis of the above statements, please click here.

Changes in statement No. 67 will take effect for pension plans in fiscal years beginning after June 15, 2013. Statement No. 68 will take effect for employers and governmental non-employers contributing entities in fiscal years beginning after June 15, 2014. However, GASB encourages plans and governments to implement the new standards earlier. The statements will be available in early August from the GASB website (www.gasb.org).

 

 

 

 

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