GASB Releases New Pension Implementation Tool Kit

The tool kit is designed to help preparers, auditors, and users of state and local government financial reports understand and apply the revised pension accounting and financial reporting standards that the GASB approved in June 2012 (see “GASB Approves New Pension Reporting Standards”).

“The GASB is committed to providing our stakeholders with a full array of resources to assist in their understanding and implementation of the pension standards,” says David A. Vaudt, chairman of GASB in Norwalk, Connecticut. “This tool kit highlights key implementation issues and provides guidance on how preparers and auditors of state and local governments can effectively comply with the requirements.”

The tool kit includes the following resources:

• The Guide to Implementation of GASB Statement 68 on Accounting and Financial Reporting for Pensions (see “GASB Issues Guide for New Pension Standards”);
• The executive summary and full text of GASB Statements No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27, and No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68;
• A video featuring GASB Project Manager Michelle Czerkawski outlining the key issues addressed by the implementation guide;
• A video featuring Vaudt discussing the top implementation issues arising from the pension standards;
• Eight podcasts featuring Czerkawski discussing the most significant changes to accounting and financial reporting for pensions;
• A video featuring GASB Technical Director David Bean and Research Manager Dean Mead discussing stakeholder outreach for the pension standards;
• An article outlining the key ways the pension standards will change how governments calculate and report pension costs and obligations;
• A background document and six fact sheets answering frequently-asked questions regarding the pension standards;
• An article identifying several areas public officials should consider as they plan, prepare, and collaborate when implementing the new standards; and
• A “Setting the Record Straight” document addressing common misperceptions about the new pension standards.

GASB Statement 68 revises existing guidance for accounting and financial reporting for pensions that are provided to the employees of state and local governmental employers. GASB Statement 71 eliminates a potential source of understatement of restated beginning net position and expense in a government’s first year of implementing Statement 68. Governments are required to implement the new accounting standards in fiscal years beginning after June 15, 2014.

This tool kit complements the one GASB released in November 2013 for pension plans looking to implement GASB Statement No. 67, Financial Reporting for Pension Plans (see “Tool Kit Helps with New Pension Accounting Standards”).

More information about the new tool kit can be found here.