In addition to promoting inaccurate pension heath assessments, a new academic paper argues, pension accounting rules set by the Governmental Accounting Standards Board create “a degree of moral hazard for stakeholders.”
An Exposure Draft proposes that if a Section 457 plan meets the definition of a pension plan in Government Accounting Standards Board (GASB) guidance, the appropriate GASB pension standards should be applied to the financial reporting for that plan.
The Board is asking for comments on the implementation guide for Statement No. 84, which provides guidance regarding what constitutes fiduciary activities for financial reporting purposes, the recognition of liabilities to beneficiaries, and how fiduciary activities should be reported.
The Implementation Guide answers questions about Statement No. 68, “Accounting and Financial Reporting for Pensions” and Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.”
A study by the CRR finds that state and local pension funding is expected to improve in 2017 due to strong market returns, but a new
approach to providing adequate contributions is needed to make the most out any recovery.
The proposed Implementation Guide provides answers to questions intended to clarify, explain, or elaborate on the requirements of GASB Statement No. 75, and addresses a limited number of issues related to Statement No. 74.
Stakeholders raised concerns regarding the inability of governments whose employees are provided pension benefits through multiple-employer pension plans to obtain information required under GASB Statement No. 68.
March 25, 2014 (PLANSPONSOR.com) - The Governmental Accounting Standards Board (GASB) voted unanimously not to delay the implementation date of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.