If you represent a state
or local government, you should be interested in the following information:
In 2004, the Government
Accounting Standards Board (GASB) issues statement 45, requiring
local and state governments to account for and report costs and
obligations related to Other Postemployment Benefits (OPEB).
This new reporting requirement
ensures that governments paying benefits to current or past employees,
other than pension plans, must disclose these payments as an expense
and, if not pre-funded, as a liability on financial statements.
This can have a huge impact on finances.
To temper this possible
impact, we have created a series of steps that can help local and
state governments understand the new regulations, and make decisions
that lesson the financial burden.