GASB Revisits OPEB Guidance

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July 30, 2009

The Governmental Accounting Standards Board (GASB) has issued an exposure draft that would allow individual employers, with fewer than 100 employees, that are part of agent employer plans to use the alternative measurement method. Comments are due to GASB by August 28, 2009.

Agent employers have multiple employers that offer OPEB (other postemployment benefits) under the same plan umbrella. Smaller public institutions, with OPEB, that are employers under a multiple agent plan and have fewer than 100 employees may elect to base reported actuarial information on measurements calculated in accordance with the alternative measurement method discussed in paragraphs 33 through 35 of Statement 45, regardless of the number of total plan members of the agent multiple-employer.

The proposed standard would amend paragraphs 11 and 12 of Statement 45 and effectively makes the number of employees at the agent employer level the determining factor in choosing a measurement method. Because use of the alternative method is less expensive, the proposed guidance should be cost-friendly to smaller employers that are part of multiple employer plans.

The proposal would be effective for fiscal years beginning after June 15, 2010, or fiscal 2011. NACUBO members who would be subject to the guidance in the exposure draft should comment directly to GASB by August 28, 2009 or provide feedback on the proposal to NACUBO for inclusion in NACUBO's comments to GASB.