GASB Issues Statement for Reporting Postemployment Benefit Plans

The state and local government accounting rule maker has issued Statement Number 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.   The new standards apply to other postemployment benefits plans, including healthcare and other nonpension benefits, that are included as trust funds in the financial reports of plan sponsors and to stand-alone financial reports of these plans that are established as trusts, according to a news release.

The Statement also provides requirements for reporting of other postemployment benefit plans funds by administrators of multiple-employer plans, when the fund used is not a trust fund.   Overall, Norwalk, Connecticut-based GASB says the approach taken is generally is consistent with that adopted in the GASB’s standards for pension plans.

“Statement 43 provides a framework for transparent financial reporting by governmental entities that have fiduciary responsibility for OPEB plan assets regarding their stewardship of plan assets, the funded status and funding progress of the plan, and employer contributions to the plan,” said project manager Karl Johnson.

Additionally, GASB said it expects to ballot a related Statement – Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions – in June.