Norwalk, CT, December 15, 2008—The Governmental Accounting Standards Board (GASB) today issued GASB Technical Bulletin No. 2008-1, Determining the Annual Required Contribution Adjustment for Postemployment Benefits. This Technical Bulletin clarifies the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, and Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for calculating the annual required contribution (ARC) adjustment.
The Technical Bulletin applies to situations in which the actuarial valuation separately identifies the actual amount that is included in the ARC related to the amortization of past employer contribution deficiencies or excess contributions to a pension or other postemployment benefit (OPEB) plan. In response to constituent feedback that questioned the availability of actual amounts, Statements 27 and 45 required a procedure for estimating the amount. The new Technical Bulletin encourages use of the actual amount, if known, in place of the estimation procedure for purposes of the ARC adjustment.
With regard to pensions, the provisions of this Technical Bulletin are effective for financial statements for periods ending after December 15, 2008. With regard to OPEB, the provisions of the Technical Bulletin are effective for financial statements for periods ending after December 15, 2008, or simultaneously with the initial implementation of Statement 45, whichever is later. Earlier application is encouraged.
The Technical Bulletin is available for purchase at www.gasb.org.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its members are drawn from the Board's diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website www.gasb.org.