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Maine Public Employees Retirement System
P.O. Box 349, Augusta, ME 04332-0349
toll free: (800) 451-9800 ● local: (207) 512-3100

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GASB
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GASB
Frequently Asked Questions
 
1.

What is GASB Statement No. 68?

2.

Who does GASB Statement No. 68 apply to?

3.

When does GASB Statement No. 68 become effective?

4.

What is the measurement date?

5.

How will I receive the annual information necessary to report on my financial statements?

6.

How often will MainePERS provide the information?

7.

What if I misplace my information?

8.

Who do I contact for specific questions about the figures provided?

9.

What is a Net Pension Liability?

10.

What is Pension Expense?

11.

What changes are required for notes to the financial statements?

12.

What changes are required for supplemental information?

13.

What is a Special Funding Situation?

14.

Who are Cost-Sharing Employers?

15.

What is MainePERS' role?

16.

What is the Employer’s role?

 
   

1. What is GASB Statement No. 68?

 

GASB Statement 68 is a new requirement that establishes financial reporting standards for Governmental Employers who provide pensions to employees.  The changes apply to an employer’s Basic Financial Statements; Notes to Financial Statements; and Required Supplementary Information.

 

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2. Who does GASB Statement No. 68 apply to?

 

All MainePERS covered employers who are also governmental employers required to report in accordance with GASB standards.

 

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3. When does GASB Statement No. 68 become effective?

 

The Statement is effective with fiscal years beginning on or after June 15, 2014 (FY2015).

 

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4. What is the measurement date?

 

The measurement date is one the employer chooses for financial reporting purposes and is the “as of” date for the calculation of Net Pension Liability (NPL).

 

This date can be up to one year prior to an employer’s current fiscal year end. MainePERS valuations are complete in the late fall of each year for a June 30th year end.

 

Once chosen, the date must be consistently used year to year.

 

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5. How will I receive the annual information necessary to report on my financial statements?

 

MainePERS will post the information through the Employer Self Service (ESS) portal.

 

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6. How often will MainePERS provide the information?

 

This information will be calculated annually, as part of the annual actuarial valuation process.

 

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7. What if I misplace my information?

 

A copy of the information for your specific employer will always be available online through your ESS portal.

 

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8. Who do I contact for specific questions about the figures provided?

 

Contact us at gasb@mainepers.org, or contact Stephanie Fecteau or Sherry Vandrell at 1-800-451-9800.

 

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9. What is a Net Pension Liability?

 

Net pension liability (NPL) is the difference between the total liability for past service (actuarially determined) for all employees and the plan’s fiduciary net position at a point in time.

 

Governmental employers will now recognize the total net pension liability for their employees on their balance sheet.

 

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10. What is Pension Expense?

 

Pension expense is the difference between the beginning NPL and the ending NPL for the period impacted by, among other things:

 

 Differences between actual and expected experience with regard to economic 
   and demographic assumptions

  Differences between actual and expected earnings on investments

  Changes in assumptions

  Contributions and benefit payments

  Interest

 

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11. What changes are required for notes to the financial statements?

 

In short, notes must include descriptive information about the pension plan(s) offered, including actuarial assumptions used in determining the net pension liability.

 

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12. What changes are required for required supplemental information?

 

  Single and Agent employers will provide 10 year schedules of:

        - Sources of changes in the NPL

        - The components of the NPL and related ratios

        - Actuarially determined contributions vs. actual contributions

  Cost-sharing employers will provide 10 year schedules of:

        - The components of the NPL and related ratios

        - Actuarially determined contributions vs. actual contributions

 

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13. What is a Special Funding Situation?

 

Defined as circumstances where a non-employer entity is responsible for contributions to a pension plan on behalf of the employees of another employer.

 

    - The contributions must be legally or contractually required 

    - The amount of the contributions required must be calculated in some way related to pensions

    - This applies to the MainePERS State/Teacher Plan

 

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14. Who are Cost-Sharing Employers?

 

Cost-sharing employers are those employers who participate in a plan where pension obligations to employees of more than one employer are pooled and pension assets can be used to pay the benefits of any of the plan members. These employers are required to report their proportionate share of the collective net pension liability of the plan as a whole. The PLD Consolidated Plan administered by MainePERS is a cost-sharing plan.

 

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15. What is MainePERS' Role?

 

Answer any questions.

 

Provide financial and demographic data to the actuary.

 

Provide timely information to employers:

 

     - Individual or Proportionate Share of Net Pension Liability 

     - Individual or Proportionate Share of Pension Expense 

     - IUUAL Balance Information, if applicable

     - Information Required for Disclosures and Supplemental Schedules

 

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16. What is the Employer’s Role?

 

Understand the reporting requirements for the type of pension plan you provide.

 

     - Statement of Net Position

     - Statement of Changes in Net Position

     - Required Notes and Disclosures

     - Required Supplemental Information and Related Disclosures

 

Consult with your auditors.

 

Choose a measurement date.

 

Implement the changes for your fiscal year beginning on or after June 15, 2014.

 

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Information contained on this Web site is neither a legal reference nor a complete statement of the laws or MainePERS administrative rules. In any conflict between this information and Maine laws or administrative rules, the laws and administrative rules shall prevail.

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