OPEB (Post-Employment Benefits Other than Pension)
Mockenhaupt Benefits Group has been providing government entities with actuarial valuations, benefit studies, expert testimony, and financial reporting assistance for their post-employment benefit liabilities for decades. As the Governmental Accounting Standards Board (GASB) Statement No. 45 took effect (first required for financial reporting in 2007, 2008, or 2009 depending upon municipal revenue thresholds), we guided clients through the implementation and valuation process. In addition to providing our clients with the OPEB numbers and disclosures they needed for financial reporting, we partnered with many of them to develop plans to control or reduce the impact of these costs on their financial status.
New GASB Statements are Taking Effect!
Just as government entities were getting used to OPEB financial reporting requirements and actuarial valuation cycles required by GASB 45, GASB was developing new Statements No. 74 and 75. The goals of the new statements are to improve the usefulness of OPEB information included in financial reports for making decisions and assessing accountability, and to increase transparency. The statements come on the heels of Statements No. 67 and 68 developed in recent years with the same goals applicable to pension plan financial reporting.
Knowing that GASB 74 and 75 were coming, we prepared early to accommodate changes in valuation methods and to consult with our clients regarding implementation dates and the implications of these new statements.
Generally, though early implementation is encouraged, the mandatory effective dates of GASB 74 and 75 are as follows:
- If there are assets dedicated to funding the OPEB benefit liabilities – required for plan reporting for fiscal years beginning after June 15, 2016 (typically fiscal year-end June 30, 2017 or December 31, 2017).
- If there are no assets dedicated to funding the OPEB benefit liabilities, implementation is first required for employer reporting for fiscal years beginning after June 15, 2017 (typically fiscal year-end June 30, 2018 or December 31, 2018).
To discuss the new GASB requirements, OPEB Actuarial Valuations, benefit cost containment options, or OPEB reporting in general.