ACCOUNTING AND FINANCIAL REPORTING FOR POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS

(ISSUED 06/15)

GASB 74/75 was designed to improve accounting and financial reporting by state and local governments for “retiree reserves” for post-retirement health care benefits, abbreviated as OPEB (Other Post-Employment Benefits).

Statement No. 74 establishes new accounting and financial reporting requirements for OPEB plans that are administered through trusts that meet certain basic criteria.  The provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.

Statement No. 75 addresses accounting and financial reporting for OPEB that is provided to the employees of state and local governmental employers. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures.  This Statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed.

In addition, this Statement details the recognition and disclosure requirements for employers with payables to defined benefit OPEB plans that are administered through trusts that meet the specified criteria and for employers whose employees are provided with defined contribution OPEB.

Effective Date: The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.