|
Public Employee Forum on GASB Statement 45
Wednesday, February 7, 2007
Holiday Inn Capitol Hill
1:00 p.m. – 5:00 p.m.
|
Background
In 2004, the Governmental
Accounting Standards Board (GASB) released
Statement 45 (GASB 45) concerning health and
other non-pension benefits for retired
public employees. These benefits, also known
as other post-employment benefits, along
with retiree health care programs, are by
far the most costly for employers.
The intent of GASB 45 is to bring governmental
accounting standards more in line with
private company standards. In general, all
public sector employers offering
post-employment benefits -- other than
pensions -- will be required to reflect the
costs of those benefits in their financial
statements. This new requirement could drive
municipalities to propose cuts that would
adversely affect the financial health and
well-being of IAFF members.
GASB Statement 45 creates challenges for
IAFF affiliates who will likely be faced
with employer proposals to reduce
post-employment benefit liabilities by:
- Lowering the level of
retiree health care benefits granted
- Offering new employees (or
new retirees) a reduced benefit level
- Placing a cap on total OPEB
employer provided benefits
|
|
|
|
|
|
