GASB UPDATES NOW AVAILABLE
The newest GASB 68 data through Dec. 31, 2022, is now available on the OP&F website by clicking here. In June of 2012, the Government Accounting Standards Board (GASB) issued Statement 68 which required governments that provide defined benefit pension plans, to recognize their long-term liability for retirement benefits, as a liability on their financial statements. It is important for employers to keep in mind that this GASB reporting obligation creates an accounting liability, not a legal liability. The legal liability for OP&F employers is that they report and pay the statutory member and employer contributions each month in accordance with Chapter 742 of the Ohio Revised Code.
From the GASB perspective, pensions are seen as part of a total compensation package and employment relationship between employer and employee. To the degree a pension system is not 100% funded, GASB believes that employers have a liability on paper for the unfunded portion of the pension system that is in proportion to their share of the total liability. Each year, OP&F discloses on their website the information employers will need to complete their financial statements in accordance with the GASB 68 requirements. This information includes the total employer contributions for the given calendar year, and the employer allocation as a percentage of this total. The disclosure information is broken down by the five-character division code for each employer.
GASB 75 information is also available on the OP&F website. GASB 75 replaces GASB 45 and accounts for Other Post-Employment Benefits (OPEB). This is primarily liability received by OP&F retirees. Since GASB 68 covers only pension plans, OPEB must be reported separately on an employer’s financial statements.
Posted 1/31/2024