GASB PROPOSES CHANGES TO PENSION STANDARDS
FOR CERTAIN GOVERNMENTS
Norwalk, CT, October 14, 2015—The Governmental
Accounting Standards Board (GASB) today proposed new guidance intended
to assist governments that participate in certain multiple-employer
pension plans to meet the reporting requirements of GASB Statement No.
68, Accounting and Financial Reporting for Pensions.
GASB Chairman David A. Vaudt said, "The GASB acted quickly in issuing
this proposed guidance in response to stakeholder concerns regarding a
situation that could make it difficult–or impossible–for some
governments, through no fault of their own, to comply with the new
pension standards."
The proposed guidance would apply to governments that participate in
certain private or federally-sponsored, multiple-employer defined
benefit pension plans, such as Taft-Hartley plans or plans with similar
characteristics.
During the implementation of GASB Statement 68,
stakeholders raised concerns regarding the inability of governments
whose employees are provided pension benefits through such
multiple-employer pension plans to obtain information related to
pensions required under Statement 68. Specifically, stakeholder concerns
focused on the inability of those governments to obtain measurements
and other relevant data points needed to comply with the requirements of
the Statement.
To respond to these concerns, the GASB has issued an Exposure Draft, Accounting and Financial Reporting for Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans,
which proposes to assist these governments by focusing employer
accounting and financial reporting requirements for those pension plans
on obtainable information.
In lieu of the existing requirements under Statement 68, the proposed
Statement would establish separate standards for employers that
participate in pension plans that meet criteria set forth in the
proposal. The guidance would establish separate standards for note
disclosures of descriptive information about the plan, benefit terms,
contribution terms, and required supplementary information presenting
required contribution amounts for the past 10 fiscal years.
The full text of the Exposure Draft is available on the GASB website, www.gasb.org. Stakeholders are encouraged to review the proposal and provide comments by November 16, 2015.