In June 2015, the Governmental Accounting Standards Board (GASB) issued two new accounting and financial reporting standards that substantially impact the reporting requirements for Other Postemployment Benefits (OPEB) plans and employers participating in the plans. The purpose of the standards, according to GASB, is to improve the way state and local governments report their OPEB liabilities and expenses, resulting in a more realistic representation of the complete impact of OPEB obligations. GASB believes the changes will improve the decision-usefulness of the reported information and increase the transparency, consistency, and comparability of OPEB information across state and local governments.
GASB Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, replaces the requirements of Statement No. 43 and Statement No. 57, and was effective for fiscal periods beginning after June 15, 2016. The South Carolina Public Employee Benefit Authority (PEBA) implemented the changes required by this standard in the South Carolina Insurance Benefits financial statements issued for the fiscal year ending June 30, 2017.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, replaces the requirements of Statement No. 45 and Statement No. 57, and is effective for fiscal periods beginning after June 15, 2018. This statement revises and establishes new financial reporting requirements for participating employers who issue financial statements based on generally accepted accounting principles (GAAP). If you are unsure about whether this will be applicable to you, please contact your auditor for additional guidance.
The new accounting rules will impact financial statement reporting for the South Carolina Insurance Benefits employers participating in the state plans.
Financial reporting and audit resources
PEBA provides the following resources for use by participating employers in preparing their GAAP based financial statements in compliance with GASB 75. Questions regarding resources provided may be submitted here.