GASB Pensions & OPEB: Issues and Resources
Background
The Government Accounting Standards Board (GASB) standards on pensions and postemployment benefits other than pensions (OPEB) substantially change the accounting and financial reporting of public employee pension and OPEB plans and the state and local governments that participate in such plans. The accounting and auditing issues facing employers that participate in plans as well as the plans themselves are complex.
AICPA Resources
AICPA Audit and Accounting Guide, State and Local Governments (SLG Guide)
The SLG Guide includes two comprehensive chapters addressing the accounting and financial reporting requirements under the GASB's pension and OPEB standards as well as related auditing considerations for both audits of governmental plans and the employers that participate in those plans.
- Chapter 13, Defined Benefit Pension Plans (Plan & Employer Considerations)
- Part I — Plan Accounting, Financial Reporting, and Auditing Considerations for Defined Benefit Pension Plans Administered Through a Qualifying Trust
- Part II — Employer Accounting, Financial Reporting, and Auditing Considerations: Single and Agent Employers
- Part III — Employer Accounting, Financial Reporting, and Auditing Considerations: Cost-Sharing Employers
- Appendix A — Governmental Employer Participation in Agent Multiple-Employer Plans: Issues Related to Information for Employer Reporting
- Appendix B — Governmental Employer Participation in Cost-Sharing Multiple-Employer Plans: Issues Related to Information for Employer Reporting
- Chapter 14, Defined Benefit Postemployment Benefits Other Than Pensions (Plan & Employer Considerations)
- Part I — Plan Accounting, Financial Reporting, and Auditing Considerations for Defined Benefit OPEB Plans Administered Through a Qualifying Trust
- Part II — Employer Accounting, Financial Reporting, and Auditing Considerations for Defined Benefit OPEB Plans Administered Through a Qualifying Trust: Single and Agent Employers
- Part III — Employer Accounting, Financial Reporting, and Auditing Considerations for Defined Benefit OPEB Plans Administered Through a Qualifying Trust: Cost-Sharing Employers
- Part IV — Employer Accounting, Financial Reporting, and Auditing Considerations for Defined Benefit OPEB Plans That Are Not Administered Through a Qualifying Trust
The SLG Guide includes in Chapter 13, as appendixes, the multiple-employer whitepapers previously issued through the GAQC. Note that the suggested solutions included in the appendices to Chapter 13 may be adapted, as appropriate for OPEB.
Auditing Interpretations
A series of auditing interpretations specifics to pensions were issued in 2014. The concepts covered in the interpretations also apply to OPEB.
All Plans:
- Interpretation No. 1, "Auditor of Participating Employer in a Governmental Pension Plan," to AU-C section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
Agent Plans
- Interpretation No. 2, "Auditor of Participating Employer in a Governmental Cost-Sharing Multiple-Employer Pension Plan," of AU-C section 500, Audit Evidence.
- Interpretation No. 1, "Auditor of Governmental Cost-Sharing Multiple-Employer Pension Plan," to AU-C section 805, Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement.
Cost-Sharing Plans
- Interpretation No. 2, "Auditor of Governmental Cost-Sharing Multiple-Employer Pension Plan" to AU-C section 805, Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement.
GAQC Archived Events on Pensions & OPEB
- GAQC Web events are held periodically and are a valuable resource to members. After each live event, a no-CPE archive is posted for member convenience. As a public service, the GAQC periodically leaves certain archived events open to the public. Pensions & OPEB focused web events are listed under the State and Local Government Accounting and Auditing category on the Archived Member Web Events page.
CPE Through AICPAStore.com
- Additional resources are available through aicpastore.com on pension and OPEB topics.
