Wouldn't your clients like help addressing their liabilities resulting from new GASB 45 rules?
What Does GASB 45 Mean for My Clients?
Recently the Governmental Accounting Standards Board (GASB) introduced new actuarial standards for Other Post Employment Benefits (OPEB) – rules that apply to every state, city and county government, as well as specialized public organizations such as school districts, hospitals, colleges and universities.
Up until now, government employers typically reported the cost of health care and other non-pension benefits on a simple pay-as-you-go basis. This method created huge obligations without taking into account future liabilities. Consequently, under new GASB 45 standards, employers must now account for, and report, the annual cost of OPEB in the same way they report pensions (i.e., the future value of accrued liabilities).
What’s the Opportunity?
Actual valuations will now be required every two years for employers with more than 200 employees or retirees, or every three years for those with less than 200. Agencies can address their new obligations by:
- Beginning to fund the obligation.
- Shrinking the obligation.
- Ignoring the obligation (okay, sticking their heads in the sand isn't really an option).
How can you help your clients cope? Contact our experts to learn more about the opportunities created by GASB 45.
403(b) and 457 plans are offered by Symetra Life Insurance Co., 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004-5135. Programs are not available in all U.S. states or any U.S. territories.
FOR AGENT & ADVISOR USE ONLY
