Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Notes & Samples
NOTE 9 – Defined Benefit Pension Plans and Defined Contribution Plan
Agencies
Agencies and institutions of higher education that issue independently audited annual financial reports and participate in defined benefit pension plans must evaluate pension reporting under applicable GASB pension standards, including:
GASB 68 establishes employer accounting and financial reporting for pensions provided through pension plans administered through qualifying trusts. It requires recognition of the following, as applicable:
- Pension expense
- Deferred outflows of resources
- Deferred inflows of resources
- Employer’s proportionate share of the net pension liability
GASB 73 applies to pensions and related assets (that are not within the scope of GASB 68) and amends certain provisions of GASB 67 and GASB 68. GASB 78 narrows the scope of GASB 68 for certain multiple-employer defined benefit pension plans. GASB 82 amends GASB 67, GASB 68 and GASB 73, including guidance on:
- Covered payroll
- Selection of assumptions
- Classification of employer-paid member contributions
Pension plan administrators (including ERS, TRS and TESRS) are responsible for providing GASB-compliant pension information needed for statewide reporting, including the state’s share of:
- Net pension liability
- Pension expense
- Deferred outflows/inflows of resources
- Required supplementary information
- Related note disclosures
Agencies impacted by these standards must coordinate with their financial reporting analyst and use the pension information provided by the applicable plan administrator when preparing Note 9 disclosures and RSI. Agencies must not independently calculate the statewide pension liability unless specifically instructed to do so by the Comptroller’s Financial Reporting section.