New Standards Spotlight Pension Liabilities

Pensions are a hot-button issue as they affect workers and budgets everywhere. The Governmental Accounting Standards Board (GASB) has voted to pass two new standards on pensions – one for governmental pension plans and the other for governmental employers regarding those plans. The new standards will require state and local governments, for the first time, to report significant pension-related liabilities on their balance sheets. This new reporting will provide a clearer view of pension obligations, spotlighting unfunded pension liabilities.

Experts at the Pennsylvania Institute of Certified Public Accountants (PICPA) can spell out what these new standards will mean -

• How are pension plans currently reported?
• What will the new standards require balance sheets to show?
• When will these standards take effect?
• How will this benefit users of financial statements and taxpayers?
• Is there legislation that states can enact to get around the new standards?

A PICPA member can explain the details of these new GASB standards, how they will change the financial recording of pension plans, and how they help with transparency issues. To set up an interview with a local CPA expert, contact Kathleen Miller at kmiller@picpa.org or 215-972-6188 or Jacqueline Barnard at jbarnard@picpa.org or 267-675-6255.