Planning Service – GASB 75 Fiscal Impact Analysis

The Governmental Accounting Standards Board (GASB) has released GASB 75 “Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions” –  new accounting standards for public Other Post Employment Benefit (OPEB) plans which will replace GASB 45.

We provide public school districts, BOCES and public entities with:

  • Completion of Other Post Employment Benefit (OPEB) valuations required by the Government Accounting Standards Board (GASB) Statement 75.
  • Assistance to subscribers with monitoring the financial and economical impact of OPEB costs.

Retiree Drug Subsidy (RDS) Attestation Service Description

  • We provide Actuarial Attestations for clients participating in Medicare’s RDS program, and thorough one-on-one reviewing of the completed attestation report to confirm the client has a deep understanding of the results.

Frequently Asked Questions 

What is changing from GASB 45 to GASB 75?

The biggest change under GASB 75 will be moving the OPEB obligation to the plan sponsor’s balance sheet vs. the notes in the financial statement. This is being done with a series of new terminology, which largely replaces currently familiar terms:

  • Total OPEB Liability – replaces Actuarial Accrued Liability (AAL)
  • Fiduciary Net Position – replaces Plan Assets
  • Net OPEB Liability – replaces Unfunded Actuarial Accrued Liability (UAAL)
  • Deferred Inflow & Outflows – amortization of variations from expected (changes in assumptions, demographics and investment returns)
  • Actuarially Determined Contribution – replaces the Annual Required Contribution (ARC)

What is new for small employers?

While a plan with under 200 covered participants was required to have a valuation performed triennially under GASB 45, GASB 75 requires all plans to have a valuation done at least biennially regardless of size. The Alternative Measurement Method (“AMM”) will still be permitted for plans with fewer than 100 covered participants.

What is the difference between a Full Valuation and an Estimated (Updated) Valuation?

A Full Valuation is when the actuary performs a valuation based off of new data from the client containing census data, premium rates, contribution amounts etc. The Estimated (Updated) Valuation is when the actuary performs a valuation based off of estimates from the previous report. During the year of the Estimated (Updated) report, the actuary does not require new census data from the client.