In June of 2012, the Governmental Accounting
Standards Board (GASB) approved two new standards that will affect
MainePERS and many of its participating employers.
GASB Statement 67 will change the accounting and financial
reporting of MainePERS beginning with our fiscal year ending June
30, 2014. GASB Statement
68 will change financial reporting of participating state and local
governments beginning in fiscal years commencing after June 15, 2014
(i.e. fiscal years ending June 30, 2015, or later).
In short, GASB Statement 68 will require
employers who participate in defined benefit pension plans to
recognize a net pension liability on their financial statements.
The net pension liability is defined as the total pension
liability minus the pension plan’s fiduciary net position.
Cost-sharing employers will report their proportionate share
of the net pension liability for the plan as a whole.
Other changes required by GASB statement 68
include a change in the calculation of pension expense.
Pension expense will now be calculated, generally, as the
difference between the beginning and ending net pension liability
amounts for the period.
This amount will be different from the amount of contributions the
employer makes during the year.
It is important to note that the changes being
required by GASB are for financial reporting only.
They do not change
the way contributions are calculated.
MainePERS will continue to work with our actuaries and Board
of Trustees on funding policy and contribution requirements.
MainePERS is committed to providing the
necessary information and support to all of our employers so that
you may successfully implement these new standards.
We will continue to add additional information and resources
to the website as it becomes available.
In the meantime, should you have questions that aren’t
addressed in these pages, please let us know.
Click on the “Contact Us” link in the main GASB Changes page
for contact information.