In anticipation of the Governmental Accounting Standards Board (GASB) issuing its Exposure Drafts outlining new rules for how state and local governments account for their pensions, the National Association of State Retirement Administrators and the National Council on Teacher Retirement issued a joint statement expressing both hope and concern.
In the statement, the organizations expressed concern over the elimanation of the annual required contribution (ARC) on financial statements. The ARC, according to the statement, has provided policymakers and others with a funding target and a tool to know whether pension plan sponsors are making an effort to advance-fund pension costs. Eliminating this tool would drastically change the debt-to-asset ratio of the accounts.
The groups are also worried about the changes to the accounting requirements for cost-sharing retirement plans, saying that they believed current disclosures to be adeuqate.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
