GASB Issued Two Statements Intended to Improve Consistency in the Measurement and Financial Reporting of Other Post-Employment Benefits (OPEB) Such as Retiree Health Insurance, and the Effects of Municipal Bankruptcy

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GASB issued two statements intended to improve consistency in the measurement and financial reporting of other post-employment benefits (OPEB) such as retiree health insurance, and the effects of municipal bankruptcy (see "Official Releases," page 77).

Statement no. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, addresses issues related to measurement of OPEB obligations by certain employers participating in agent multiple-employer OPEB plans. The standard amends Statement no. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and Statement no. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.

Statement no. 57 also:

* Enables certain agent employers to use the alternative measurement method, a less complex and potentially less expensive alternative to a full actuarial valuation.

* Adjusts the requirement that a defined benefit OPEB plan obtain an actuarial valuation, in light of the change allowing more qualifying employers to use the alternative measurement method.

* Clarifies that the same frequency and timing of determining OPEB measures are required for both agent multiple-employer plans and their participating employers. …