School Business Affairs September 2019

asbointl.org SCHOOL BUSINESS AFFAIRS | SEPTEMBER 2019 15 FINANCE AND ACCOUNTING O ne of the most significant accounting stan- dards issued by the Governmental Account- ing Standards Board (GASB) in recent years is Statement No. 75, Accounting and Finan- cial Reporting for Postemployment Benefits Other than Pensions (GASB 75). This standard fundamentally alters the way gov- ernment employers (including schools) account for other postemployment benefits (OPEBs) and imposes additional financial statement preparation burdens on schools’ accounting staffs. What Is an OPEB? An OPEB is any benefit (other than pension benefits) provided to employees after they cease employment. The most common types of OPEBs are medical, dental, vision, and other healthcare–related benefits. Often, government employers allow employees to remain in the employer’s healthcare plan after they retire. Other forms of OPEBs include death benefits, life insurance, disabil- ity, and long-term care. Note that even if retirees must pay to participate in an employer’s healthcare plan at the same rate as Inside GASB Statement 75: Financial Reporting Requirements for OPEB The significant changes brought about by GASB 75 make it critical for districts to have an implementation plan. By Ted Williamson, CPA MONKEY BUSINESS/STOCK.ADOBE.COM

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