Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
John S. O'Brien, Director, Legislative Budget Board
HB2365 by Truitt (Relating to financial accounting and reporting for this state and political subdivisions of this state.), As Introduced
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.
Actuarial impact statements are required for any legislation that proposes to change a fund liability of a public retirement system. The proposed legislation would affect the statement of liabilities for every public retirement system which has a government sponsor that also provides retiree health benefits, and allow all to implicitly state there is no liability.
338 Pension Review Board