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

• GASB Statement No. 67, Financial Reporting for Pension Plans

  • GASB 67 Implementation Guide
• GASB Statement No. 68, Accounting and Financial Reporting for Pensions
  • GASB 68 Implementation Guide
• GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date
• GASB’s Implementation Toolkit for Employers

CalSTRS Resources

FAQs and Financial Statements

• GASB 67/68 FAQ
• GASB 67/68 Financial Reporting Valuation
• FY 2016-17 Comprehensive Annual Financial Report
• FY 2016-17 Other Pension and Postemployment Benefits Information

Presentations and Board Resolutions

• GASB Pension Accounting Changes
• April 3, 2014, Teachers’ Retirement Board Resolution 14-16: Adoption of Assumptions for GASB Statement No. 67 Financial Reporting

Webinars

• GASB 67/68 Employer Webinar, February 9, 2015

  • Webinar Slides
• GASB 67/68 Employer Webinar, January 28, 2015
  • Webinar Slides
• GASB 68 Implementation Session – CalCPA May 2015 School Districts Conference

Employer Guides and References

• GASB 68 Educational Material
• April 10, 2014, Employer Information Circular, Volume 30; Issue 2:
  Employer Financial Reporting for Fiscal Year 2014-15 and New Audit Requirements
• Job Aid – Reconciliation of Employer Contributions
  • Secure Employer Website
• California School Accounting Manual
• May 2014 AICPA State and Local Government Expert Panel Pension Whitepaper: Governmental Employer Participation in Agent Multiple-Employer Plans: Issues Related to Information for Employer Reporting
• July 2014 Milliman PERiScope Newsletter – GASB 67/68: Calculation specifics on individual entry age normal and recognition of deferred inflows/outflows
• February 2015 Milliman PERiScope Newsletter – Special Funding Situations
• Moody’s Analysis of GASB Statements 67 and 68