HEALTHCARE NEWS
Significant Changes to GASB Reporting of OPEB Liabilities
Other Post-Employment Benefit (OPEB) accounting standards are once again in the spot light. The Government Accounting Standards Board (GASB) issued two pronouncements (GASB statement numbers 74 and 75) in June 2015, which significantly changed the financial reporting requirements by state and local governments of their OPEB liabilities. Easily the largest change since the implementation of accrual accounting for OPEB benefits, these two pronouncements replaced GASB statements 43 and 45 and will continue to apply to OPEB benefits such as retiree health insurance. Plans that use a qualified Trust to fund their retiree health benefits are required to comply with the new standards with fiscal years beginning after June 15, 2016. Plans that do not utilize a Trust will be required to comply with fiscal years beginning after June 15, 2017. Please contact your Nyhart consultant for more information on the changes.
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