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Implied Subsidy and PEMHCA (CalPERS Medical Benefits)

07-26-2015 |

Implied subsidy must be recognized for PEMHCA (CalPERS medical) benefits in GASB 45 accounting.

If your Agency participates in PEMCHA, CalPERS medical benefits, GASB 45 - and now GASB 74/75 - require recognition of the Implied Subsidy in your OPEB liabilities, ARC, and OPEB expense.

This article illustrates the the implied subsidy and answers common questions about why the change occurred and how this will actually work in operation for California public agencies providing medical benefits through PEMHCA.

Implied Subsidy for PEMHCA Agencies -- Questions and Answers


For background on PEMHCA benefits, see PEMHCA Rules (2015)

For more on the Implied Subsidy see: Implied subsidy description

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