Pensions and postemployment benefits other than pension plans (OPEB) continue to be hot topics for the Governmental Accounting Standards Board (GASB). In October 2016, the GASB issued an Implementation Guide Exposure Draft (ED) for OPEBs. The ED includes guidance for plans on the application of the provisions of GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.
Questions and Answers
The 169 questions and answers in the proposed Implementation Guide provide a resource for common plan implementation situations that auditors and plan management may encounter related to the following:
- Scope and applicability of GASBS No. 74.
- Types of OPEB plans and benefits.
- Plan financial statements and financial statement elements.
- Notes to plan financial statements and required supplementary information (RSI).
- Measurement of the net OPEB liability.
- GASBS No. 74 effective date and transition guidance.
In addition to the questions and answers, the ED provides illustrations in Appendix B. These illustrations cover the determination and calculation of various amounts and provide plan note disclosure and RSI illustrations.
Proposed Effective Date
The proposed effective date for the Implementation Guide is years beginning after December 15, 2016, except for certain questions effective for years beginning after December 15, 2017.
A proposed Implementation Guide on GASBS No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, is expected in the 2nd quarter of 2017, which will provide OPEB accounting and financial reporting guidance for local government employers.