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GASB Approves New OPEB and Pension Accounting Exposure Drafts

05-28-2014 |

New accounting standards requiring recognition of unfunded OPEB and pension liabilities released as Exposure Drafts.


The Government Accounting Standards Board (GASB) announced approval of Exposure Drafts of three new accounting standards for OPEB and unfunded pension plans, which were issued in June of 2014.

The OPEB accounting standards are similar to GASB 67 and 68, governing accounting for pension benefits:

  • Unfunded OPEB liabilities will be recognized on the face of an agency's financial statements.
  • The long term rate of return on plan investments is used to discount benefits projected to be paid by plan assets and a 20-year Municipal Bond rate is used to discount unfunded benefit payments.
  • Use of the Entry Age actuarial cost method is required.
  • Extensive note disclosures and required supplementary information must be presented.

Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, will address accounting and financial reporting by government employers, currently covered by GASB Statement 45.

Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans will address financial reporting by plans that administer OPEB benefits on behalf of governments, currently under GASB Statement 43.

Unfunded pension plans are addressed in the third Exposure Draft: Accounting and Financial Reporting for Pensions and Financial Reporting for Pension Plans That Are Not Administered through Trusts That Meet Specified Criteria, and Amendments to Certain Provisions of GASB Statements 67 and 68.

Written comments on the Exposure Drafts must be submitted by August 29, 2014. 

Exposure drafts can be downloaded from the GASB website

GASB Approves Exposure Drafts 5-28-2014

Q&A - The GASB's OPEB Proposals

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