Governmental Accounting Standards Board (GASB)
The Governmental Accounting Standards Board (GASB) is an independent, nonprofit, non-governmental regulatory body charged with setting accounting and financial reporting standards for state and local governments.
GASB 43, 45, & 57
Refer to California Employers' Retiree Benefit Trust Fund (CERBT) for details regarding GASB Statements 43, 45, and 57.
GASB 67 & 68
GASB Statements 67 and 68 changed the way pension liabilities are reported.
- GASB Statement 67 (PDF) replaces the requirements of the existing GASB Statement 25 (PDF), Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, effective for fiscal years beginning after June 15, 2013.
- GASB Statement 68 (PDF) replaces the requirements of GASB Statement 27 (PDF), Accounting for Pensions by State and Local Governmental Employers. This reporting requirement applies to the generally accepted accounting principles-based financial statements of employers and is effective for fiscal years beginning after June 15, 2014. These changes won't affect the amount of contributions sent to CalPERS; GASB 68 is an accounting change only and not related to funding.
- Beginning with Fiscal Year 2014-15, GASB Statement 68 will require reporting of the net pension liability in accrual-based financial statements. This is distinctly different than previous methods in which funding and accounting were aligned.
Under GASB, CalPERS employer groups are categorized into three types of plans:
- A single employer plan is a defined benefit pension plan used to provide pensions to employees of only one employer.
- An agent multiple employer plan has assets pooled for investment purposes, but separate accounts are maintained for each individual employer so each employer's share of the pooled assets is legally available to pay the benefits of only its employees.
- A cost-sharing multiple employer plan has pension obligations to the employees of more than one employer that are pooled, and the pension plan assets can be used to the pay the benefits of the employees of any employer that provides pensions through the pension plan. Generally, public agency plans with less than 100 active members are pooled plans, which are considered cost-sharing multiple employer plans.
|Employer Group||Reporting Classification|
|State of California||Agent multiple employer|
|Schools - non-teaching||Cost-sharing multiple employer|
|Public agencies - pooled||Cost-sharing multiple employer|
|Public agencies - non-pooled||Agent multiple employer|
Judges' Retirement Fund
If you're a public agency, there are two ways to determine whether you're an agent or cost-sharing multiple employer plan. The cover page of your GASB 68 Accounting Valuation Report will identify the type of plan. Alternatively, if your Annual Actuarial Valuation Report for funding purposes has sections 1 and 2 reported, then the plan is a cost-sharing plan; otherwise it's an agent plan.
Employers are required to report on their financial balance sheet their net pension liability, i.e., the unfunded liability for the pension benefits promised to current employees, retirees, and their beneficiaries.
The following figures will be required to be determined, related to defined-benefit pension plans as of a date (measurement date), no earlier than the end of the employer's prior fiscal year:
- Net pension liability (asset)
- Pension deferred outflows and deferred inflows of resources related to pensions
- Pension expense (income)
Employers participating in single employer or agent multiple employer plans will recognize 100 percent of the above amounts for each plan. Employers participating in cost-sharing plans will recognize their share of the risk pools collective amounts.
Net pension liability represents total pension liability less the fiduciary net position of the pension plan. Changes in net pension liability will be immediately recognized as pension expense or reported as deferred outflows/inflows of resources depending on the nature of the change.
There are also substantial changes to methods and assumptions used to determine actuarial information for GASB reporting:
- Disclosures and required supplementary information related to pensions are expanded.
- Entry Age Normal is the only allowable actuarial cost method.
- Projected benefit payments should include effects of ad hoc Cost-of-Living Adjustments (COLAs) considered substantively automatic.
- A single blended rate should be used to discount projected future benefit payments, based on two factors.
- The long-term expected rate of return on plan investments (net of investment expenses) that are expected to finance pension benefits to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and is expected to be invested, using a strategy to achieve that return
- A yield or index rate for 20-year, tax-exempt general obligation (municipal) bonds with an average rating of AA or higher, to the extent that the conditions above are not met
Employers can request a report from CalPERS containing the required information. GASB-related work is an employer expense and can't be paid from the Public Employees' Retirement Fund. Refer to the specific employer tab in this section to view the associated report fee.
For those employers with PEPRA members, measurement date June 30, 2014, GASB 68 Accounting Valuation Reports will be available for those rate plans that received a June 30, 2013, Funding Valuation Report in the fall of 2014. If you did not receive a funding report for your PEPRA members, then you will not have a GASB 68 Accounting Valuation Report for the measurement date of June 30, 2014, for your PEPRA members.
All ordered and paid for public agency agent multiple employer reports and associated census data will be available through my|CalPERS. The plan auditor’s reports will be available on the Reports tab.
Based on the current progress of report generation and the external audit process, the availability of the public agency cost-sharing multiple employer reports and associated audit opinion has changed to July 31, 2015.
Employers can request a report from CalPERS containing the required information. GASB-related work is an employer expense and can't be paid from the Public Employees' Retirement Fund.
- Public agencies pooled: cost-sharing multiple employer - $850 per plan
- Public agencies non-pooled: agent multiple employer - $2,500 per plan (includes census data)
If an employer currently receives four annual actuarial valuations:
- One for non-pool plan
- Three for pooled plans
The employer will pay $5,050 to obtain four GASB 68 Accounting Valuation reports and census data.
- $2,500 for one non-pooled plan (1 X $2,500)
- $2,550 for three pooled plans (3 X $850)
- Total = $5,050
Public agency employers will be able to request their GASB 68 Accounting Valuation Reports and/or census data for agent plans via my|CalPERS. Refer to the Ordering Instructions for GASB 68 (PDF), which provides detailed instructions.
Census data of plan members will be available at no additional charge to agent multiple employers as part of their request for their GASB 68 Accounting Valuation Reports. Census data is only available for agent multiple employer plans (non-pooled plans). The census data provided by CalPERS will include active, inactive, and retired members and will be in a CSV text file format. Some of the data elements included are:
- Annual compensation
- CalPERS ID
- Date of birth
- Date of hire or years of service
- Date of retirement
- Employment status (e.g., active, inactive, or retired)
- Special compensation
CalPERS is prohibited from distributing member names and social security numbers. Employers can utilize my|CalPERS and the CalPERS ID to retain this information if needed. For a full listing of the data elements that will be included in the census data file, please refer to the GASB 68 Census Data File Layout for June 30, 2013 (PDF).
For public agency cost-sharing plans, CalPERS is applying paragraph 49 of GASB Statement 68 to calculate the allocation proportions used to determine each employer’s proportionate share of collective net pension liability, deferred outflows/deferred inflows of resources related to pensions and pension expense.
CalPERS risk pools operate by assessing different contribution rates to employers based on separate relationships that constitute the collective net pension liability. For example, due to varying benefit levels and payment options, plans in the same risk pool may have different contribution rates. This methodology ensures that those separate relationships are taken into account.
The development of an employer’s plan proportions can be found in Appendix D of its GASB 68 Cost-Sharing Accounting Valuation Report.
School employers are not required to order GASB 68 Accounting Valuation Reports as they will be available to retrieve from the CalPERS website. The Schools fee for the GASB 68 Accounting Valuation Report is $350 per district. The County Office of Education will receive one invoice that contains a total amount charged for all districts.
School employers can access the GASB 68 Accounting Valuation Report and Schedule of Employer Allocations and Collective Pension Amounts for the 2014 measurement date on the Reports tab.
- GASB 68 Schools Accounting Valuation Report - Measurement Date of June 30, 2014 (PDF)
- GASB 68 Schools Schedule of Employer Allocations and Collective Pension Amounts - Measurement Date June 30, 2014 (PDF)
Please check back here soon for Public Agency GASB 68 audit reports for measurement date June 30, 2014.
CalPERS will provide the following support:
- Engage an external auditor to:
- Issue an examination report over selected management’s assertions related to census data maintained by CalPERS and opine on the schedule of changes in fiduciary net position by rate plan as a whole and on each rate plan column in the schedule for the agent multiple employer plans
- Opine on the schedule of employer allocations and related notes and the schedule of collective pension amounts for school cost-sharing multiple employer plans
- Opine on the total net pension liability, total deferred outflows of resources, total deferred inflows of resources, and total pension expense related to public agency cost-sharing multiple employer plans
- Provide employers with the note disclosures required by the new reporting standards, upon request
- Provide net pension liability and other pension-related amounts to assist employers with GASB 68 based on the type of plan (e.g., agent or cost-sharing) in which the employer is participating, if requested
Check this page frequently for updates regarding the GASB 68 implementation and email us if you have specific questions. You may also subscribe to the Employer Bulletin to receive updates regarding the new reporting requirements.
These videos of previously held webinars provide a walk-through of GASB 68 Accounting Valuation Reports for schools and public agencies. Please refer to the supporting documentation when viewing the videos.
- GASB 68 Accounting Valuation Report Sample – Agent Multiple Employer (PDF)
- GASB 68 Accounting Valuation Report Sample – Cost-Sharing Multiple Employer (PDF)
- GASB 68 Accounting Valuation Slideshow for Public Agencies (PDF)
Public Agencies Webinar
- GASB 68 Accounting Valuation Report Sample - Schools Cost-Sharing (PDF)
- GASB 68 Accounting Valuation Slideshow for Schools (PDF)
Forms & Publications
- Comprehensive Annual Financial Report (CAFR) (PDF)
- GASB 68 Crossover Test Report (PDF)
- GASB 68 Schools Accounting Valuation Report - Measurement Date of June 30, 2014 (PDF)
- GASB 68 Schools Schedule of Employer Allocations and Collective Pension Amounts - Measurement Date of June 30, 2014 (PDF)