December 15, 2015
On December 11, 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. This new guidance addresses a practical issue under Statement No. 68, Accounting and Financial Reporting for Pensions, associated with pensions provided by certain multiple-employer pension plans and to state and local governmental employers whose employees are provided with pensions from these plans. The statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer pension plan that:
The requirements of Statement 78 are different from the requirements in Statement 68 and apply to the financial statements of state and local government employers whose employees are provided pensions that have the characteristics described above. GASB issued Statement No. 78 because jurisdictions participating in multiple-employer DB plans (for example, Taft-Hartley plans) found it difficult to obtain themeasurements and other information needed to comply with Statement No. 68 due to the nature of a governmental employer’s involvement in and relationship with the pension plan.
Statement 78 establishes:
Statement 78 is effective for reporting periods beginning after December 15, 2015.
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