GASB Concludes Pension Standards Met Objectives
On June 3, the Governmental Accounting Standards Board (GASB) released a post-implementation review (PIR) report concluding that Statements 67 and 68 achieved their intended objectives, more than a decade after initial approval.
The Standards in Context
In June 2012, GASB approved two foundational pension standards:
- Statement No. 67: Financial Reporting for Pension Plans — applies to pension plans that administer benefits
- Statement No. 68: Accounting and Financial Reporting for Pensions — applies to governmental entities that provide pension benefits
Both standards aimed to ensure transparency, consistency, and comparability in pension reporting by state and local governments and pension plans.
Implementation Timeline
- Statement 67 was effective for financial statements beginning after June 15, 2013
- Statement 68 was effective for fiscal years beginning after June 15, 2014
The PIR Process
The post-implementation review began in October 2014 and proceeded in three stages:
- Post-issuance implementation monitoring
- Post-effective-date evaluation of costs and benefits
- Research summary and reporting
Stage 1 continued through 2017; Stage 2 concluded in Q4 2023; Stage 3 is now complete.
Findings
GASB found the standards achieved their purpose, that costs and benefits aligned with expectations, and that the Board followed its standard-setting process. The review recommended no modifications to the standard-setting methodology itself.
Implications
For public-sector CFOs and their external auditors, the PIR validates the current GASB 67/68 framework and signals stability. Expect continued focus on implementation quality rather than structural revision to pension reporting in the near term.