GASB to Release Draft Guidance on OPEB ReportingCategories: National Developments,OPEB/GASB 45/75
The Bond Buyer, by Naomi Jagoda, May 19, 2014
MINNEAPOLIS —The Governmental Accounting Standards Board is preparing to release a draft statement on other post-employment benefits that will “mirror” the board’s new pension standards, GASB chairman David Vaudt told government finance officers.
The draft guidance will be approved by the board later this month, and GASB hopes to release it by the end of June, Vaudt said Sunday at the Government Finance Officers Association’s annual conference here.
OPEB are health care and other benefits promised to retirees besides pensions. For most state and local governments, OPEB primarily consists of retiree healthcare, Vaudt said.
Just as GASB’s new pension standards require state and local governments that offer defined-benefit pension plans to report a net pension liability in their financial statements, the OPEB draft guidance would require governments to recognize a net OPEB liability, he said.