Some employers with irrevocable OPEB trusts include the GASB 43 plan schedules in their CAFR in lieu of issuing a separate financial report for the OPEB plan. For such cases, it appears GASB will want the plan reporting schedules (GASB 74) prepared based on the effective date of GASB 74 even if the schedules are only shown in the employer’s financial report. The following is paragraph 5 of GASB 74,
“The requirements of paragraphs 19-57 and 60 of this Statement apply to state and local governmental OPEB plans (that is, entities that have all the characteristics of an OPEB plan, as defined in paragraph 63) that are administered through trusts that meet the criteria in paragraph 3. Those requirements apply whether (a) the OPEB plan’s financial statements are included in a stand-alone OPEB plan financial report or (b) the OPEB plan is included in the financial report of another government.”
This may effectively require the employer to implement GASB 74 a year earlier than planned. Employers who include the OPEB plan’s accounting schedules in their financial reports in lieu of having a separate plan audit will need to discuss this issue with their outside auditors and actuaries.
GASB 75 is a very long document and often sounds repetitious. The reason is that the standard provides guidance for many situations. Factors that influence the guidelines:
To avoid confusion when navigating GASB 75, it is important to find the section that applies to your case. When looking for the correct section, it will help to first answer the three questions above.