Employee Relations 10/24/2014
CalPERS Issues GASB 68 Update
The California Public Employees’ Retirement System (CalPERS) yesterday issued a Circular Letter intended to provide public agency employers contracting with the system an update on Governmental Accounting Standards Board (GASB) Statement No. 68. GASB is the entity that establishes requirements for state and local government financial accounting and reporting.
Counties will recall that GASB issued Statement No. 68 in June
GASB, after it began a standards review process in 2006 to determine whether existing requirements best encompassed its goal of promoting accountability and transparency regarding the financial effects of employers’ commitments and actions related to pension benefits. GASB determined that revised standards were necessary to lessen the variability of pension data being reported and better present how pension benefits are earned.
Statement No. 68, “Accounting and Financial Reporting for Pensions” replaced Statement No. 27, “Accounting for Pensions by State and Local Governmental Employers. Click here for CSAC’s summary of the new standard.
To meet the various new reporting requirements, those employers that participate in CalPERS will require additional information beyond what is currently provided in the funding actuarial valuation reports and audited financial statements to determine their specific pension amounts and related note disclosures. That additional information will be provided by CalPERS on a fee for service basis (expected to be set in early 2015); actuarial reports are scheduled to be available to employers in Spring 2015 for fiscal years beginning after June 15, 2014.
CalPERS is requesting the following information from contracting public agency employers to assist staff in planning for work related to GASB 68. Counties can send the information to CalPERS_GASB_68@calpers.ca.gov.
- Year end close dates (necessary to understand the variety of reporting requirements that CalPERS will need to prepare).
- Whether the county plans to request CalPERS to provide GASB 68 reporting information.