In June of 2015, the GASB issued GASBS No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, and GASBS No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. These Statements parallel the pension guidance included in GASBS Nos. 67 and 68. Like the pension standards, these standards significantly change and expand the financial accounting and reporting for other postemployment benefits other than pensions (OPEBs). The standards are intended to give a clearer picture of the cost of providing these benefits to employees upon retirement.
GASBS No. 75 requires that governments report a liability on the face of their statements for the defined benefit OPEBs they provide to their employees.
GASBS No. 74 addresses financial reporting of the OPEB plans (both defined benefit and defined contribution) that administer benefits for governments.
The effective date for GASBS No. 74 is for fiscal years beginning after June 15, 2016.
The effective date for GASBS No. 75 is for fiscal years beginning after June 15, 2017.
Earlier application is encouraged for both GASBS.
Contact me at doug@wohlbergcpa.com or by phone at (616) 583-0094 if you have any questions.