In June 2012, the Government Accounting Standards Board (GASB) issued two new standards that will substantially change the accounting and financial reporting of public employee pension plans and the state and local governments that participate in such plans. GASB Statement No. 67, Financial Reporting for Pension Plans
, revises existing guidance for the financial reports of most governmental pension plans. GASB Statement No. 68, Accounting and Financial Reporting for Pensions
, revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits. GASB Statement No. 67 is effective for financial statements for periods beginning after June 15, 2013. GASB Statement No. 68 is effective for financial statements for fiscal years beginning after June 15, 2014.
There are numerous accounting and auditing issues facing employers that participate in multiple-employer plans of which the State and Local Government Expert Panel (SLGEP) has been working very diligently to address. The GAQC has issued two whitepapers that address issues and suggested best practice solutions related to cost-sharing multiple-employer plans (cost-sharing plan) and the participating employers and the AICPA Auditing Standards Board has issued three related auditing interpretations. See next two sections.
The SLGEP continues to work on a similar series of papers related to agent multiple-employer plans which are further from completion because the issues are so much more complex. In trying to address the issues at hand, the SLGEP has had many discussions internally as well as with stakeholders including actuaries, plans, governmental employers, and even the GASB. GAQC Alert #244
describes the various SLGEP efforts on pension-related matters.