A Study of Exposure Draft of GASB Proposed Statement of OPEB Measurements

This proposed Statement addresses issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (OPEB) plans (agent employers). This proposed Statement would amend Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pension, to permit an agent employer that has an individual-employer OPEB plan with fewer than 100 total plan members to use the alternative measurement method, at its option, regardless of the number of total plan members in the agent multiple-employer OPEB plan in which it participates. Consistent with the proposed change to the employer-reporting requirements, this proposed Statement also would amend the requirement of Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, that a defined benefit OPEB plan obtain an actuarial valuations. The proposed amendment would permit the requirement to be satisfied for an agent multiple-employer OPEB plan by reporting an aggregation of results of actuarial valuations of the individual-employer OPEB plan or measurements resulting from use of the alternative measurement method for individual-employer OPEB plans that are eligible. In addition, this proposed Statement clarifies that when actuarially determined OPEB measures are reported by an agent multiple-employer OPEB plan and its participating employers, those measures should be determined as of a common date and at a minimum frequency to satisfy the agent multiple-employer OPEB plan's financial reporting requirements