In June of 2012, the GASB approved 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.

Statements 67 and 68 remove the direct link between measurements for funding purposes and measurement of pension expense for accounting and financial reporting purposes. For governments that have actuarially based funding policies, like NM PERA, the measurement requirements of the new Statements for accounting and financial reporting purposes will include an actuarial valuation different from the actuarial valuation that is used for funding purposes. Statement 68 significantly changes how governments measure and report the long-term obligations and annual costs associated with the pension benefits they provide.

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 for FY 2014 and FY 2015 can be located in Note 12 and in the Required Supplementary Information of PERA's annual financial statements. The total NPL for the PERA fund to be allocated to employer participants that participate in the fund was approximately $3.3 billion in FY 2014 and approximately $4.2 billion in FY 2015.

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 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.