New Online Jobaid Helps IAFF Affiliates Understand GASB 45

August 9, 2006 – IAFF affiliates and members need to be aware of the new U.S. Governmental Accounting Standards Board (GASB) Statement 45 (GASB 45) and its effect on health care and other non-pension benefits for retired public sector employees, including fire fighters and emergency medical personnel.

The intent of GASB 45 is to bring governmental accounting standards more in line with private company standards. Though GASB has no power to change how governments fund retiree health care, pension and other benefits, it does govern the rules auditors must use in determining the reliability of governmental financial statements.

These financial reporting requirements are prompting state and local governments to consider cost-cutting measures that would, if implemented, affect the financial health and well-being of IAFF members.

Under GASB 45, public sector employers will no longer be able to report post-retirement benefits on a pay-as-you-go basis and must account for and report the annual cost of other post-retirement benefits (OPEB) for current and future retirees. With the soaring cost of health care, employers may reduce your retirement benefits to adjust their budgets under this new standard.

The IAFF urges its affiliates to become involved in the decision-making process for any changes local and state governments propose as a result of GASB 45. Be prepared to discuss with your employers solutions and alternatives to any cost-cutting measures that jeopardize your retirement benefits.

The IAFF has developed a new online jobaid to assist IAFF affiliates in understanding GASB 45 and responding to probable proposals from the public employers.