What’s New in the World of GASB
In order to keep you updated on everything that is new in the world of GASB 75 and GASB in general, we have created this user-friendly section. Please check back here frequently for NEW Updates!
Latest GASB 75 Newsletters
- February 2019 Newsletter
- December 2018 Newsletter
- June 2018 Newsletter
- April 2018 Newsletter
- March 2017 Newsletter
- May 2017 Newsletter
- November 2017 Newsletter
- December 2017 Newsletter
GASB Update – November 2016
Actuarial Cost Method
Effective as of fiscal year 2017-2018, GASB 45 will transition to GASB 75. In order to better prepare all of our GASB 45 clients for this change, we will be providing updates on how this change will affect you. We will also be transitioning to some GASB 75 requirements for the 2016-2017 fiscal year. This way, you will have fewer changes to adjust to once GASB 75 comes into effect.
One of the GASB 75 legislation changes that we will implement for 2016-2017 is changing the actuarial cost method from Projected Unit Credit to Entry Age Normal – level percentage of pay method. GASB 75 does not allow the use of Entry Age Normal – level dollar method.
Why is GASB 75 requiring this change? There are a few reasons for it:
- GASB 45 allows for 1 of 6 actuarial cost methods. However, to standardize reports, GASB 75 will require the implementation of only 1 actuarial cost method, which will allow for improved comparability.
- Entry Age Normal – level percentage of pay vs. Projected Unit Credit – Entry Age Normal provides for normal cost that remains at the same percentage of salary as the member ages. When applying Projected Unit Credit, the normal cost increases as a percentage of salary as the member ages.
Finally, please note that this change will not have a major impact on your Unfunded Actuarial Accrued Liability. We have tested some of our 2015-2016 Full Valuations in order to compare the effects of using Entry Age Normal versus Projected Unit Credit and noted that the change will be minor.
GASB 75 will no longer allow for triennial reporting. This means that all districts and BOCES will need to have a full valuation on a biennial basis. Therefore, starting with the 2016-2017 fiscal year, we are transitioning all of our current triennial clients to a biennial reporting basis. Also, please keep in mind that GASB 75 will continue to require that all districts and BOCES obtain a Disclosure report in the off year.
GASB Update – June 10, 2016
The 2015-2016 fiscal year has been highlighted by the addition of 12 new GASB 45 clients and 3 new BOCES areas. There are a number of reasons for this success.
The GASB 45 Service at Questar III BOCES is BOCES aidable. That gives us a vital pricing advantage over most private companies that provide GASB 45 Service (but cannot provide BOCES aid). More than that, we keep our pricing consistent from fiscal year to fiscal year. With many NYS school districts facing budget cuts, we offer the perfect balance of quality and affordability. Many of our new clients have decided to work with us due to our pricing approach.
Ease of data collection
GASB 45 can be confusing for some school districts, especially when a new Business Official or other new staff are added. What really separates our GASB 45 service from the competition is that we know the many stresses school districts are dealing with. Therefore, we aim to always make the data collection process as easy as possible. That is why we will only ask you for the data that is truly necessary for generating your report. When some data is simply not available or is very difficult to obtain, we will work with you to find other ways to give us what we need.
We also offer a very unique Enrichment Service: completely free of charge we can come to your district to go over the data collection process with you. The Enrichment Service has been extremely helpful, especially for our newer clients or in situations where new district staff take over the GASB 45 data collection process.
We have had a number of new clients join us because they are seeking a more reliable GASB 45 Service with quicker turnaround times. We consistently work with our clients based on their needs. We do need to have all of your data before we can work on your report. However, once that is accomplished, we do make every effort to accommodate your timelines. For instance, if you have Auditors coming to your district soon and you need the report for their review, we can make your report a priority.
GASB Update – October 10, 2015
In October 2014 the Society of Actuaries released new mortality tables (RP-2014) and an updated Mortality Improvement Scale. While this may be old news in the actuarial world, it is still fresh and relevant news in the GASB 45 world.
Beginning with the 2015-2016 Full Valuation GASB 45 reports, the Questar III BOCES GASB 45 team will start using these new RP-2014 mortality tables (along with the new Mortality Improvement Scale).
What kind of impact will the use of these RP-2014 mortality tables have on the AAL for GASB 45 reports? First, let us note that the new RP-2014 mortality tables clearly show that people are living longer. For instance, the life expectancy of a 65 year old male rose by 2 years from age 84.6 (going by our previously used RP-2000 mortality tables) to age 86.6 on the current RP-2014 mortality tables. As a result, you should expect an increase in the AAL. Our Questar III BOCES GASB 45 team will analyze the impact through the 2015-2016 school year and will provide you with additional information. Stay tuned!