GASBS 67 and 68 Reporting Standards

You can access the GASBS 68 Journal Entry tool here and the GASBS 68 user guide here

Governmental Accounting Standards Board (GASB) set standards for financial reporting for pension plans. GASB Statement No. 67, Financial Reporting for Pension Plans, applies to pension plans that administer pension benefits, and Statement No. 68, Accounting and Financial Reporting for Pensions, applies to governments that provide pension benefits to their employees. GASB issued the statements to provide the transparency, consistency, and comparability of the pension information reported by state and local governments and pension plans.

Statement 67 defines the actuarial approach for the Plan to measure total employer pension liability. GASB 68 outlines employer requirements, recognizing a portion of the fund’s net pension liability on the balance sheet.

PERA, GASB 67 and the Net Pension Liability (NPL)

As an employer participant in the multi-employer cost-sharing pool (PERA fund), a portion of the NPL will be allocated for disclosure annually in your entity's financial statements. PERA’s NPL (for all funds/plans) and related disclosures can be located in the Notes and Required Supplementary Information of PERA's annual financial statements.

GASB 68 and the Schedule of Employer Allocations

PERA provides the allocation percentage necessary to derive an employer's proportionate share of the collective net pension liability and other collective net pension liability and other collective pension-related amounts. PERA prepares a schedule of employer allocation percentages on an annual basis. This schedule is audited by PERA's external financial auditors to ensure the employers are receiving accurate allocation information.

GASB Statement No. 82, Pension Issues—an amendment of GASB Statements No. 67, No. 68, and No. 73

GASB amended GASB statements No. 67, 68 and 73 to address pension issues raised during and after the first year of implementation. The objective of this Statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements.

To read the full pronouncement please visit the GASB website at GASB STATEMENT NO. 82, PENSION ISSUES—AN AMENDMENT OF GASB STATEMENTS NO. 67, NO. 68, AND NO. 73.