The Governmental Accounting Standards Board (GASB) voted June 25 to approve two new standards aimed at improving the accounting and financial reporting of public employee pensions by state and local governments. Statement No. 67, Financial Reporting for Pension Plans, revises existing guidance for the financial reports of most pension plans, while Statement No. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits.
GASB said the new standards will result in a more faithful representation of the full impact of pension obligations. For example, net pension liabilities will be reported on the balance sheet, providing citizens and other users of these financial reports with a clearer picture of the size and nature of the financial obligations to current and former employees.
Statements 67 and 68 and a plain-language description of the new requirements will be available for download from the GASB website (www.gasb.org) in early August.