What is GASB45, and how can we help?

The Governmental Accounting Standards Board ( GASB ) issued statement No. 45, Accounting and Financial Reporting by Employers for Post Employment Benefits other than Pensions. These include retiree healthcare coverage subsidies and prescription benefits.

To whom does GASB apply?

This new reporting requires employers to value post employment benefits using accrual accounting rather than a current obligation, pay-as-you-go approach. Implementation of the standard is required for fiscal years beginning after December 15, 2006, for governmental employers with total annual revenues of $100 million or more.

Why should we start analyzing these future obligations now?

By preparing early using our analysis tool, you can understand how the anticipated costs associated with your retiree benefit plans impact your future revenues, and begin to plan steps to better deal with that impact. These include creating alternatives and what-if scenarios using actuarial assumption data excluding certain categories of employees in anticipation of proposed changes in collective bargaining agreements.

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