OPEB / GASB 75 Lunch-n-Learn – the recap
We had a great “Lunch-n-Learn” session on May 24th with PARS & Vanguard to help demystify the coming changes to OPEB accounting standards for municipal entities as it relates to their retiree medical programs. GASB 74 & GASB 75 represent a significant change from the current standards and we shared the key points about how it will impact your financial statement, when it’s effective & what you can be doing now to prepare. Much like we’ve described in prior white papers, the changes are meant to create a “single & consistent” set of standards for all postemployment benefits (Pension & OPEB) and are a continuation of the recent updates to the pension standards (GASB 67 & GASB 68).
What’s the Financial Statement Impact?
- Higher volatility for liabilities & expenses
- Liabilities move to the Balance Sheet
- Enhanced disclosures
- GASB 74 (reporting for the Plan) – Fiscal years beginning on or after June 15, 2016
- GASB 75 (reporting for the Employer) – Fiscal years beginning on or after June 15, 2017
What can you do to prepare?
- Adopt a formal funding policy
- Adopt a formal investment policy
- Begin a conversation with your actuaries & auditors
For a more complete description, download the slides from the presentation – https://go.odysseyadvisors.com/GASB75-Lunch-n-Learn or give me a call at (860) 531-4951 or email me at email@example.com with any questions. OPEB changes are coming – be prepared & not afraid.