GASB 75 became effective for fiscal years beginning after June 15, 2017. I know that sounds like a long time ago already, but it’s not. In fact, many of the entities it applies to have not yet finished their first fiscal year after the effective date. Villages whose fiscal year ends on 2/28, for example, are just finishing their first GASB 75 year today.
But there are plenty of municipalities who should be finishing up their actuarial valuations by now. A library or fire district with a 6/30 fiscal year end, for example, is required to have their first GASB 75 valuation done for the year ending 6/30/18. That’s regardless of when the last GASB 45 valuation was completed.
Valuing liabilities for Other (than pension) Post Employment Benefits in a manner similar to those for pension plans makes sense. The potential magnitude of future obligations faced by government entities needs to be measured. That was the purpose of GASB 45. GASB 75 takes it further, with enhanced disclosure of assumptions, explanations of OPEB liability changes from year to year, and other changes that address consistency and transparency among actuarial valuations. GASB 75 valuations are also required more often than under GASB 45, so that changes in liability can be recognized sooner. As an Enrolled Actuary, I see the new standard as an improvement.
If you need a GASB 75 actuarial valuation completed for any of your government entity clients, please contact me.
11/5/2022 11:36:18 am
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