In 2015, the Governmental Accounting Standards Board (GASB) released new accounting standards for public sector postretirement benefit programs – GASB 75 –which will replace GASB 45 and became effective for employer fiscal years beginning after June 15, 2017. The purpose of this statement is to improve financial reporting by state and local governments for postemployment benefits other than pensions and improve the information about financial support provided by other entities.
If your entity provides other postemployment benefits (OPEB), you will most likely need to incorporate this change as you prepare for your next financial audit. If you have IMRF employees, this standard applies to you. At John Kasperek Co., Inc., we are already working with its local school district clients to incorporate GASB 75 for the fiscal year ending June 30, 2018, financial statements. Institutions will be required to obtain an actuarial valuation to provide the necessary information for their financial reports.
Our firm recommends contacting your actuary as soon as possible to get the process started in order to be fully prepared. We also recommend using 6/30/2017 as your measurement date for the valuation. If your actuary is experienced in working with school districts in Illinois, they should be able to let you know exactly what information is needed.