- 1 How is OPEB reported by governments?
- 2 What is OPEB and how is OPEB reported by governments?
- 3 What is net OPEB liability?
- 4 What is OPEB actuarial?
- 5 Is OPEB Cerbt mandatory?
- 6 What does post employment mean?
- 7 What is the OPEB obligation and how is it determined?
- 8 What are OPEB costs?
- 9 What is the most common postretirement benefit other than pensions?
- 10 How is OPEB calculated?
- 11 What does GASB stand for?
- 12 How is OPEB expense calculated?
- 13 What is the GASB 68?
How is OPEB reported by governments?
Under Statement 75, the total OPEB liability is required to be reported on the face of the government-wide financial statements. For AUD/ST-3 reporting purposes, the total OPEB liability will be reported on the Schedule of Non-Current Governmental Liabilities (W Schedule) for OPEB applicable to governmental funds.
What is OPEB and how is OPEB reported by governments?
What is OPEB? Other Postemployment Benefits (or OPEB) are benefits (other than pensions) that U.S. state and local governments provide to their retired employees. These benefits principally involve health care benefits, but also may include life insurance, disability, legal and other services.
What is net OPEB liability?
net OPEB liability equals the total OPEB liability minus the value of the assets in the OPEB plan that is administered through a trust that meets the specified criteria. The total OPEB liability and the OPEB plan’s net position are measured as of the same date.
What is OPEB actuarial?
OPEB ( “Other Postemployment Benefits ”) plans offer benefits to former or retired employees other than pensions such as healthcare, life insurance, dental insurance, and sometimes more. Government entities are required to have an actuary value these benefits for financial statement reporting.
Is OPEB Cerbt mandatory?
In order to participate in the California Employers’ Retiree Benefit Trust (CERBT) program, employers must provide periodic other post-employment benefit (OPEB) cost reports to the CalPERS Board of Administration.
What does post employment mean?
Post employment is a term used by the Government Accounting Standards Board in the reporting of benefits after a state, federal or local official leaves their position.
What is the OPEB obligation and how is it determined?
Net OPEB Obligation—Measurement An employer’s net OPEB obligation is defined as the cumulative difference between annual OPEB cost and the employer’s contributions to a plan, including the OPEB liability or asset at transition, if any.
What are OPEB costs?
Other post-employment benefits (OPEBs) are benefits, other than pension distributions, that some employers provide to retirees. OPEBs can include paid health insurance, life insurance, and deferred compensation.
What is the most common postretirement benefit other than pensions?
Postretirement benefits other than pensions simply refer to benefits other than pensions that are paid to retired employees. Life insurance and medical plans are some of the most common examples of these benefits. It is also known as OPEB (other post-employment benefits).
How is OPEB calculated?
OPEB contributions are calculated as a percentage of an employee’s total pensionable compensation (i.e., all payments with a retirement gross) for a given pay period, with matching employer contributions.
What does GASB stand for?
Established in 1984, the Governmental Accounting Standards Board (GASB) is the independent, private- sector organization based in Norwalk, Connecticut, that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP).
How is OPEB expense calculated?
A general layout for calculating OPEB Expense is as follows:
- + Normal Cost.
- + Interest on NOL.
- +/- Experience gain/loss.
- +/- Employer Payments (Withdrawals) to/from OPEB Trust.
- +/- Variance of Investments.
- vs. Expected Net OPEB Expense.
What is the GASB 68?
GASB, Financial Accounting Standards Board. 68, Accounting and Financial Reporting for Pensions, revises and establishes new financial reporting requirements for most state and local governments that provide their employees with pension benefits.