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Governmental Accounting Standards Board (GASB) – Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans

This establishes new accounting and financial reporting requirements for OPEB plans (FPPA is the OPEB plan). This statement is effective for fiscal years beginning after June 15, 2016. FPPA implemented this standard in the fiscal year ending December 31, 2017.

This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans - as amended, Statement 43, and Statement No. 50, Pension Disclosures.

The scope of this Statement includes OPEB plans - defined benefit and defined contribution - administered through trusts that meet specified criteria. This Statement also includes requirements to address financial reporting for assets accumulated for purposes of providing defined benefit OPEB through OPEB plans that are not administered through trusts that meet the specified criteria. This statement increases the amount of information added to the financial statements (note disclosures), and requires new required supplementary information (RSI) schedules for both defined benefit and defined contribution OPEB plans.

Statement No. 75 - Accounting and Financial Reporting for Postemployment Benefit Other Than Pension

requires state and local government employers participating in and providing OPEB benefits to their employees to report expanded information regarding these OPEB plans in their financial statements. This statement is effective for fiscal years beginning after June 15, 2017.

This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans.

This Statement is intended to improve information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This Standard establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, 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.

Employers participating in the FPPA Statewide Death & Disability Plan should review this Memo regarding the application of Statement No. 75.

For more information on these statements, visit the GASB website.


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