GASB 67/68

GASB 67/68: Pension Benefits Reporting

Overview

In June 2012, the Governmental Accounting Standards Board issued two new accounting standards that significantly changed the way pensions are reported:

  • Statement No. 67, Financial Reporting for Pension Plans, was implemented by CalSTRS in its fiscal year 2013-14 financial statements.
  • Statement No. 68, Accounting and Reporting for Pensions, is effective for plan employers in fiscal year 2014-15.

Under previous standards, the pension obligation calculated for funding purposes and financial reporting were closely aligned. GASB 67 and 68 break the link between funding and financial reporting by moving from an approach that focuses on the process by which employers finance their future projected cash outflows for pension benefits, to one that stresses the obligation an employer incurs through the employment-exchange process.

Significantly, the employers’ collective pension obligation, which was previously only disclosed in the notes to CalSTRS financial statements, will be reported as a liability in the employers’ financial statements.

In an effort to assist employers with their implementation of these standards, we have certain resources necessary to meet the reporting requirements. For more information see the GASB Statement Nos. 67 and 68 FAQs or contact Bankole Fatunla at BFatunla@CalSTRS.com.

GASB Resources

CalSTRS Resources

FAQs and Financial Statements

Presentations and Board Resolutions

Webinars

Employer Guides and References