Understanding GASB 67: Financial Reporting for Pension Plans

Overview

The Governmental Accounting Standards Board’s Statement No. 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25, introduces significant enhancements to financial reporting for pension plans administered through trusts. Effective for fiscal years beginning after June 15, 2013, this standard requires greater transparency in reporting fiduciary net position, changes in net position, and detailed disclosures on plan structure and assumptions.

What This Means for Your Organization

GASB 67 expands reporting requirements to include additional financial statements and required supplementary information (RSI). Pension plans must now present a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position, along with ten years of RSI detailing contributions, liabilities, investment returns, and actuarial assumptions. Enhanced disclosures also cover the plan’s benefit types, membership classes, investment policies, and the determination of fair value. These changes aim to provide a more complete view of pension obligations and plan funding..

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What We’re Asking Clients to Do

To comply with GASB 67, McMahan and Associates encourages all clients administering pension plans to begin reviewing their plan documentation, actuarial valuations, and disclosures. If your plan is a single-employer or cost-sharing arrangement, RSI spanning the past ten fiscal years will be required. We recommend gathering details on plan member classes, participating employers, and the legal authority governing the plan.

Available Resources

To support your preparation and reporting, we’ve provided the following downloadable resource:

This letter summarizes the core changes and compliance expectations under GASB 67. We’re here to guide you through implementation and help with any plan-specific considerations.

Looking Ahead

GASB 67 represents a fundamental shift in how public pension plans report their financial condition and obligations. If further guidance is issued or additional resources become available, we’ll continue to keep you informed.

Conclusion

Navigating the changes introduced by GASB 67 can be complex, but early preparation and clear documentation can streamline your compliance efforts. If you have questions about how this standard affects your pension plan or need assistance with disclosures and financial reporting, please reach out. We’re here to help you stay ahead of these important regulatory updates.

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