Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, requires employers participating in state and local government pension plans to report expanded information concerning pensions in their financial statements, as well as their proportionate share of the Net Pension Liability effective for fiscal years beginning after June 15, 2014.
Here are two important things to know about GASB Statement No. 68, which replaces GASB Statement No. 27 and Statement No. 50 as the reporting standards for employers:
- It does not impact funding — contributions will continue to be based on actuarially determined rates; and
- It requires employers to recognize their proportionate share of the collective Net Pension Liability in their financial statements, as well as pension expense and deferred inflows and outflows of resources.
Consult this implementation chart to see when GASB Statement No. 68 required employers to implement these reporting standards.
For more information on Statement No. 68, visit the GASB website.