New accounting standards requiring recognition of unfunded OPEB liabilities will be released as Exposure Drafts in June 2014.
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A session on "Pension and Health Care - Building a New Bridge to Retirement" will be presented by John Bartel, Mary Beth Redding and Deanna Van Valer on Thursday May 1st at the Western Region IPMA-HR conference in San Francisco.
Details on the new pension accounting standards, GASB Statements 67 and 68, have been published by the GASB.
The GASB has written a very helpful article for understanding Deferred Inflows and Outflows of resources.
Difference between pension amounts for Books (accounting), Bonds, and Budgets (cash contributions) plus a Guide to Pension Funding for Elected Officials from the Pension Funding Task Force.
This report discusses the public policy objectives of pension and OPEB funding and develops a model funding policy consistent with those objectives as well as with actuarial standards of practice. Appropriate plan funding is a major issue for retirement systems, with current funding levels relatively low and recognizing constraints on available resources. With the elimination of the ARC (Actuarial Required Contribution) under GASB Statement 68, which has been used by many plans as the "out of bounds marker" for funding, there is little guidance for setting contribution levels. “Actuarial Funding Policies and Practices for Public Pension and OPEB Plans and Level Cost Allocation Model” was adopted March 1, 2013 by the legislature-created California Actuarial Advisory Panel to advise actuaries and retirement boards both in California and across the U.S when setting funding policies. John Bartel is a member of the California Actuarial Advisory Panel. Please contact John or any of our actuaries to understand the model funding policies and how they might apply to your plan.
Alan Milligan, CalPERS Chief Actuary, made a presentation to CSMFO on February 22nd, preceded by a CalPERS Board workshop on the 21st. The presentation discussed potential changes to the contribution methodology that will likely result in much higher contribution rates and higher volatility in normal years but much less contribution volatility for extreme events. These would likely first impact FY 15/16 contribution rates.
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