GASB 67/68 Implementation
The Governmental Accounting Standards Board (GASB) issued two related statements that substantially change the accounting and financial reporting of pensions like the Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) and our employers. Statement No. 67, Financial Reporting for Pension Plans, affects the financial statements of PSRS/PEERS; Statement No. 68, Accounting and Financial Reporting for Pensions, affects the financial statements of participating employers.
The GASB standards break the link between actuarial funding and financial accounting. Previous GASB standards required pension plans to calculate the annual required contribution (ARC) and report payments toward the ARC. This measured the plan's funding of the pension obligation. The new standards consider only how pension plans account for and report pension costs. The bigger change in requirements is for the participating employers.
Please be assured that PSRS/PEERS is committed to helping our participating employers learn as much as possible about these new accounting standards. We have provided answers to some frequently asked questions about these new reporting standards along with links to valuable resources.
Should you have any questions about either GASB accounting standard, please feel free to contact Anita Brand, PSRS/PEERS Chief Financial Officer. You may also wish to consult with your own accountant or an independent auditor about these new standards.