GASB 75

GASB 75 Valuation Service

ISFIS partners with Van Iwaarden Associates, a leading Other Post-Employment Benefits (OPEB) actuarial firm, to offer our GASB 75 Compliance Service for school districts, cities, and counties.  Schools we work with tell us our valuation service is easier to use and less expensive than other providers.  To ensure timely completion of your GASB 75 valuation report, sign up today.


GASB 75 Requirements

The Governmental Accounting Standards Board (GASB) issued Statement 45 in June 2004.  GASB 45 was an accounting and financial reporting provision requiring government employers to measure and report liabilities associated with post-employment benefits other than pensions.  GASB Statement 75 largely replaced GASB 45 and was first effective for FY2018 for most Iowa public school districts and other government employers.  The Statement requires an actuarial “valuation” of your Other Post-Employment Benefits (OPEB) such as retiree medical, drug, dental, vision, life, long-term disability, and long-term care benefits not associated with a pension, be reported on your Balance Sheet, regardless of whether or not your district funds the liability. 

Government employers required to comply with GASB 75 include public schools, cities, states, and other government entities that offer OPEB and report under GASB.  Valuations are required to include both early retirees and medicare retirees, if they are allowed to continue on the employer’s plan(s).  The primary changes from GASB 45 to GASB 75 relate to a requirement for all school districts and public entities to report every other year, a change in the method of calculating a discount rate, and a requirement to include the liability on the entities' combined financial report.

GASB 75 allows for an Alternative Measurement Method (AMM), which is a simplified method of calculating your OPEB Valuation, for entities with fewer than 100 total plan members.  This AMM Valuation is generally less effort on behalf of the government entity and the provider, which in turn saves those entities eligible for this method some expense.


Compliance Deadlines

The OPEB Valuation is required now every two years.  In the "off year", most auditors require a Roll Forward report be performed and the OPEB number be adjusted on your financial statements. 

ISFIS recommends using a census date of September 1 of each year, which can be used for both a two year period.  The Roll Forward year will then only need to be adjusted for a change in the discount rate which is a much simpler valuation to run and less effort on behalf of staff to pull together.


Number of Members

"Members" include all active employees, terminated employees who have accumulated benefits but are not yet receiving them, retirees currently receiving benefits, surviving spouses (if they are entitled to coverage), and eligible employees not actively participating.


Pre-Funding Benefits

GASB 75 does not require entities to pre-fund, but does require these liabilities to be reported in the financial statements.  The intent of GASB 75 is to focus increased attention on non-pension retiree benefits and the need to intelligently manage these costs.


Getting Started

To get started with your GASB 75 Valuation with ISFIS, simply email us a copy of your most recently completed valuation and we'll send you a Participation Agreement with a quote.  If you're not sure which report you need (Standard Year Valuation or Roll Forward Valuation, Full Report or AMM Report), contact your auditor for assistance.