Implementing GASB 45: Recommended Best Practices in Local Government
Charles K. Coe
North Carolina State University - Department of Political Science & Public Administration
William C. Rivenbark
University of North Carolina (UNC) at Chapel Hill - School of Government
December 2, 2010
Public Budgeting & Finance, Vol. 30, Issue 4, pp. 71-81, 2010
The Governmental Accounting Standards Board issued Statement No. 45 - Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions in 2004, requiring local governments to actuarially determine their annual required contribution to fund other postemployment benefits (OPEB) and to account for the unfunded amount as a liability on annual financial statements. This article discusses best practices on the implementation and management of this accounting standard, including actuarial practices, funding decisions, and benefit changes. It also presents how Phase I cities and counties in North Carolina implemented Statement No. 45 for further explanation. The hope is that these best practices will serve as a guidepost for making OPEB policy decisions, especially among smaller local governments, on the criteria of financial accountability and sustainability.
Number of Pages in PDF File: 11Accepted Paper Series
Date posted: January 3, 2011
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