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GASB Statement No. 75 <br /> In June 2015,the GA56 issued two final Statements detailing how state and local governments <br /> should account for and report postemployment benefits other than pensions(OPEBs),such as <br /> retiree healthcare. GASB 75 is first effective for plan financial statements for fiscal years beginning <br /> after June 15,2017. <br /> The new standards differ in several ways from the previous applicable standard(GASB 45), <br /> including: <br /> • Balance Sheet Recognition: GASB 45 recognized the Net OPEB Obligation,which smoothed <br /> costs over time and provided deferred recognition on certain items. GASB 75 requires the <br /> balance sheet to reflect the Total OPEB Liability. <br /> • Liability Discount Rate: GASB 75 requires liabilities to be discounted based a tax-exempt, <br /> high-quality 20-year municipal bond index. <br /> • Liabilities must now be calculated using a method called"Entry Age with level percent of <br /> pay". This generally will increase liabilities for most plans. <br /> • Employers are required to recognize a new measure of pension expense that accelerates <br /> recognition of benefit changes,actuarial gains and losses,investment gains and losses,and <br /> assumption changes. <br /> • Replacing most of the current financial disclosures and required supplementary information <br /> with information based on new measures. <br /> • Valuations are required to be completed every two years for all employers,regardless of the <br /> number of Plan Members. <br /> City of Pequot Lakes <br /> Page 5 ' <br />