Project Pages

Implementation Guide for Statement 75 on Other Postemployment Benefits

Project Description: The objective of this project is to publish guidance to assist other postemployment benefit (OPEB) employers and governmental nonemployer contributing entities address implementation issues associated with Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended. This project will result in the issuance of an Implementation Guide focused on implementation issues related to employer-specific requirements. That Implementation Guide also will contain limited questions and answers to address issues related to measurement of the total OPEB liability by single-employer and cost-sharing multiple-employer OPEB plans that were identified subsequent to the issuance of Implementation Guide 2017-2, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.

Status:
Implementation Guide cleared for Issuance: December 2017
Exposure Draft of a proposed Implementation Guide cleared: June 2017
Added to Current Agenda: September 2015

Implementation Guide for Statement 75 on Other Postemployment Benefits—PROJECT PLAN


Background: Statement 75 was approved in June 2015 and is effective for fiscal years beginning after June 15, 2017. The need for implementation guidance is indicated by the complexity of the OPEB standards, generally.

Accounting and Financial Reporting Issues: Statement 75 was approved in June 2015. Statement 75 is effective for fiscal years beginning after June 15, 2017. The need for implementation guidance is indicated by the complexity of the OPEB standards, generally. Although certain implementation guidance issued related to Statement No. 68, Accounting and Financial Reporting for Pensions, applies equally to Statement 75, other issues specific to OPEB warrant additional implementation guidance.

Project History:
  • Added to current technical agenda: September 2015
  • Consultative group appointed? Yes
  • Exposure Draft of a proposed Implementation Guide cleared: June 2017
  • Comment period: July–September 2017
  • Implementation Guide cleared for Issuance: December 2017

Implementation Guide for Statement 75 on Other Postemployment Benefits—RECENT MINUTES

Minutes of Teleconference, November 20, 2017
 
The Board reviewed a ballot draft of Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting). The Board did not object to the issuance of the Implementation Guide.
 
Minutes of Meetings, October 31−November 2, 2017

The Board discussed issues raised by respondents to the Exposure Draft of Implementation Guide No. 201X-Z, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) and provided feedback to the project staff on a preballot draft of a final Implementation Guide. With the exception of the following revisions to questions and answers, the Board tentatively did not object to carrying forward to a ballot draft the questions and answers from the Exposure Draft without modification:
  • Questions 4.14 and 4.15: Modifying the questions and answers to focus on the key issues addressed in the Exposure Draft proposals
  • Questions 4.71 and 4.362: Excluding these questions and answers from the ballot draft
  • Questions 4.87, 4.123, 4.227, 4.376, and 4.401: Modifying these questions and answers to clarify the use of the term inactive employees in the scenario presented without making similar modifications to corresponding questions and answers that previously were issued in the context of pensions or OPEB plan reporting
  • Questions 4.109, 4.245, 4.387, and 5.3: Modifying these questions and answers to clarify their application to scenarios in circumstances in which multiple benefits are provided through a single OEPB plan or an employee’s beneficiaries, spouse, or other dependents are entitled to benefits under the plan terms
  • Question 4.348: Modifying the answer to the question to include the possibility that governmental fund balance held for OPEB purposes potentially could be classified as restricted based on application of the requirements of Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions
  • Questions 4.379 and 4.380: Excluding these questions and answers from the ballot draft
  • Questions 4.496 and 4.497: Consolidating these questions and answers into a single question and answer that addresses the recognition of deferred outflows of resources and deferred inflows of resources related to OPEB in circumstances in which the alternative measurement method is used.
A majority of the Board tentatively objected to staff-proposed modifications to the following questions and answers; therefore, tentatively, no modifications to the Exposure Draft proposals will be made:
  • Questions 4.55 and 4.354
  • Questions 4.134, 4.269, and 4.409
  • Questions 4.149 and 4.418.
The Board tentatively did not object to the proposal that modifications be made to the effective date and transitions provisions of the proposed Implementation Guide to link the effective date for OPEB plans (and for certain related questions and answers for employers that provide OPEB through OPEB plans that are administered through trusts that meet specified criteria) to the actuarial valuation date.

In addition, the Board tentatively did not object to the proposal that the final Implementation Guide include headers to differentiate sections of the guide (for example, single and agent, cost-sharing, etc.). Further, the Board tentatively did not object to the proposal that the term equivalent arrangement be referenced once in the guide and removed from individual questions and answers and that the Codification instructions in the final Implementation Guide clarify the use of the term trust for purposes of applying certain requirements in Implementation Guide No. 2017-2, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, when those questions and answers are presented in the Codification of Governmental Accounting and Financial Reporting Standards and the Comprehensive Implementation Guide.

Minutes of Meetings, June 28–29, 2017

The Board reviewed a ballot draft of a proposed Exposure Draft of Implementation Guide No. 201X-Z, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting), and considered clarifying edits. After discussing those proposals, the Board did not object to the issuance of the Exposure Draft of the Implementation Guide.

Minutes of Meetings, May 23–25, 2017

The Board reviewed a preballot draft of the proposed Exposure Draft of Implementation Guide No. 201X-Z, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, and provided suggestions for clarifying edits to questions and answers in the draft document. The Board did not object to moving forward with a ballot draft of the proposed Exposure Draft of the Implementation Guide.