Post Retirement Benefits

Lepton is an actuarial consulting firm with expertise in health benefits and has experience performing Actuarial valuation of Other Post-Employment Benefit (OPEB) Plan.

Our team consists of actuaries who are members of the American Academy of Actuaries, the American Society of Pension Professionals & Actuaries (ASPPA), or the Society of Actuaries and are qualified to prepare actuarial valuations of Post Retirement Benefit Plans. Our credentialed actuaries have been preparing and reviewing these valuation reports for several years.

On your behalf, our actuaries can complete valuation of your Post Employment Benefit Obligations and prepare relevant disclosures required to comply with

  • GASB 74, 75

  • FASB ASC715-60

  • generally accepted actuarial principles,

  • appropriate actuarial standards of practice.

 

GASB FASB.PNG

GASB 74,75

What is GASB? The Governmental Accounting Standards Board (GASB) is a national body that sets the standards for governmental accounting and financial reporting. GASB issued Statement 74 & 75 to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB).

Statement No. 74, Financial Reporting for Postemployment Benefits Other than Pensions

Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions

Non-compliance with GASB 74,75 standards may have a negative result to the public entity as  follows:

  • Accounting firms may view non-compliance as a negative factor in their audit opinions.

  • Bond rating agencies may view non-compliance as a negative factor in credit ratings which could result in a rating downgrade.

Improvements from prior standards include:

Robust disclosures of assumptions

Explanations of how and why the OPEB liability changed from year to year

Use of a discount rate that is more realistic

A single method of attribution

FASB ASC715-60

FASB Accounting Standards Codification (Topic 715-60) Compensation–Retirement Benefits–Defined Benefit Plans–Other Postretirement (previously Statement of Financial Accounting Standards No. 106) 

This Statement establishes accounting standards for employers' accounting for postretirement health care benefits and other non-pensions benefits. It is a standard that was issued by the Financial Accounting Standards Board.

References & Articles