Compliance December 21, 2017

GASB Issues Implementation Guide for OPEB Reporting Standards

The guide provides answers to questions intended to clarify, explain, or elaborate on the requirements of GASB Statement No. 75, but also addresses a limited number of issues related to Statement No. 74.

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The Governmental Accounting Standards Board (GASB) has issued a new Implementation Guide that contains questions and answers about the GASB’s new standards on accounting and financial reporting for post-employment benefits other than pensions. Those benefits (primarily retiree health care) are referred to as other post-employment benefits (OPEB).

Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), provides answers to questions intended to clarify, explain, or elaborate on the requirements of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Statement 75 replaces the requirements of GASB Statement No. 45. It requires governments to report a liability on the face of the financial statements for the OPEB that they provide.

The document also addresses a limited number of issues related to Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.

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The questions and answers contained in the GASB Implementation Guides constitute Category B authoritative guidance under generally accepted accounting principles (GAAP). The guidance is applicable to all state and local governments that follow GAAP when preparing their financial statements.

The guide is available for download at no charge on the GASB website, www.gasb.org. Printed copies will be available through the GASB Store in the coming weeks.
Data and Research December 21, 2017

Many Investors Plan to Increase Retirement Plan Contributions in 2018

Forty percent plan to increase their deferral rate, up from 24% in 2016.

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Forty percent of investors want to increase contributions to their retirement plan in 2018, up from 34% in 2016, according to E*TRADE’s “StreetWise,” its quarterly survey of investors. Nearly 40% want to adjust their asset allocation in response to market conditions, on par with last year.

Also consistent with last year, 35% want to learn more about investing, trading and the markets.

“The market in 2017 exceeded many investor expectations by continually reaching higher highs—pressing forward amid shifting political and social agendas, and significant Fed moves,” says Mike Loewengart, vice president of investment strategy at E*TRADE Financial. “As the sun rises in 2018, it’s no surprise that investors are more likely to be engaging with the market through retirement savings accounts given the bull market’s continued run. With a pro-business agenda in Congress, strong corporate earnings and the economy buzzing, investors are clearly hoping this bull has more room to run.”

The survey also uncovered that among various age groups, Millennials are the most interested in learning more. Gen Xers are the most focused on retirement investing, with more than half of this group saying they want to increase their retirement plan contributions in 2018.

More than half of Boomers want to change their portfolios’ allocations in 2018.

E*TRADE conducted the online survey of 918 investors in early October. To qualify, they had to have at least $10,000 in an online brokerage account.

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