The bill would require the state and political subdivisions of the state to follow state statutory standards of accounting as described in the bill, and adds that any accounting requirements for other postemployment benefits at the government-wide or fund level on any basis other than pay-as-you-go would not apply to the state or its political subdivisions.

The Governmental Accounting Standards Board has issued Statements 43 and 45 creating accounting standards for other postemployment benefits (OPEBs), including retiree health. It would require pension systems and their governmental sponsors to disclose both prior service liabilities, and an ongoing net OPEB obligation reflecting liability for any funding shortfalls.  The bill would not allow any governmental plan sponsors to report these liabilities as per GASB standards.