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GASB Overview

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The GASB standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs (AICPA). The GASB develops and issues accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to taxpayers, public officials, investors, and others who use financial reports.

The KRS Audit Committee has approved the 2018 GASB 67, and GASB 74 Actuary Reports for CERS, KERS and SPRS.  Posted below are the actuary reports. The GASB 68 and 75 tables include the June 30, 2018, Net Pension Liability, and Net Other Post-employment Benefits (OPEB) Liability so that employers can use the data for the calculation of their pension and OPEB expense. 

KRS recommends that each employer review the GASB 68 and 75 Excel tables with its external auditor to ensure that it meets all the requirements of the statement, and to ensure that the required calculations have been performed correctly and accurately.

KRS’ actuary, Gabriel Roeder Smith (GRS), calculated each employer’s proportionate share of the KERS and CERS plan’s Net Pension Liability (NPL); Pension Expense (PE); Net OPEB Liability; and, OPEB Expense.

GASB 74 and 75

GASB 74 and 75 were new reporting requirements for Other Post-Employment Benefits (OPEB) in 2017. These requirements apply to the insurance plans. Reporting is similar to GASB 67 and 68 requirements for the pension plans. KRS began GASB 74 reporting effective fiscal year 2016-2017. GASB 75 impacts employers and will be required for reporting on the current fiscal year.  Watch this video to learn more about GASB 75 reporting requirements for employers.

 

 

 In order for practitioners to implement the GASB 68 and 75 reporting, they will need the split of employer contributions between the Pension and Insurance components. Those splits are listed below. 

Fiscal Year 2018 Pension and Insurance Components for GASB 68 Reporting
SystemPensionInsuranceTotal
KERS41.06%8.41%49.47%
KHAZ21.44%2.26%23.70%
CERS14.48%4.70%19.18%
CHAZ22.20%9.35%31.55%
SPRS72.47%18.77%91.24%
Fiscal Year 2019 Pension and Insurance Components for GASB 68 Reporting
SystemPensionInsuranceTotal
KERS *Reduced Rate41.06%8.41%49.47%
KERS Budgeted Rate71.03%12.4%83.43%
KHAZ34.39%2.46%36.85%
CERS16.22%5.26%21.48%**
CHAZ24.87%10.47%35.34%**
SPRS119.05%27.23%146.28%

*House Bill 265 passed during the 2018 legislative session reduced the employer contribution rate for Regional Mental Health/Mental Retardation Boards, Local and District Health Departments, State Universities, Community Colleges and any other agency eligible to voluntarily cease participating in the KERS. Click here to view a list of agencies authorized to pay the reduced KERS Nonhazardous employer contribution rate for fiscal year 2019 (same as fiscal year 2018). Agencies not listed will pay the KERS Nonhazardous budgeted employer contribution rate. 

**House Bill 362 passed during the 2018 legislative session caps CERS employer contribution rate increases up to 12% per year over the prior fiscal year for the period of July 1, 2018 to June 30, 2028.


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