Accounting (GASB)

The Governmental Accounting Standards Board (GASB), an independent organization that is a component of the Financial Accounting Foundation, establishes the Generally Accepted Accounting Principles (GAAP) for state and local governments in the U.S., including their retirement systems. GASB standards are not federal laws or regulations and the organization is not an enforcement authority. Compliance with GASB’s standards, however, is enforced through the statutes of many states and cities, as well as the audit process, when auditors render opinions on the fairness of financial statement presentations in conformity with GAAP.

Many state and local retirement systems publish annual comprehensive financial reports, in compliance with the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting Program. Such reports include investment and actuarial information in addition to GAAP-based financial statements on which an independent auditor expressed an unqualified opinion.

Beginning in 1994, GASB statements 25 and 27 provided accounting and reporting guidance for public retirement systems and public employers that sponsor a pension plan. GASB reviewed these statements beginning in 2006 and completed updated standards for implementation by retirement systems with a fiscal year ending after 6/15/2013 and by employers that sponsor a pension plan with a fiscal year ending after 6/15/2014. These new standards are Statement 67, Financial Report for Pension Plans, and Statement 68, Accounting and Financial Reporting for Pensions.

In addition to financial reporting, typical public retirement system accounting responsibilities include contribution accounting and reporting, internal accounting, investment accounting, and auditing.

Detailed GASB resources

GASB Statement 67, Financial Reporting for Pension Plans

GASB Statement No. 67 is a revision to Statement No. 25. Statement 67 requires defined benefit pension plans to prepare two financial statements - a statement of fiduciary net position and a statement of changes in fiduciary net position.
Summary of Statement 67

GASB Statement 68, Accounting and Financial Reporting for Pensions

GASB Statement No. 68 is a revision to Statement No. 27 and makes changes to the valuation of pension plan liabilities. The statement requires changes to the way liabilities are calculated for the long-term investment assumptions that can be used to discount them over time. GASB 68 also makes changes to the way annual pension expenses are calculated and reported.
Summary of Statement 68

NASRA Resources

NASRA Resolution 2022-01: Public Employee Retirement System Accounting Standards & Actuarial Methodologies
Public Pension Reporting and Disclosure: The Current State of Practice and Examples of What Works Well, Center for State & Local Government Excellence and NASRA

Other Resources

Virginia Retirement System GASB Resources for Employers
Ten Things You Should Know About Public Pension Disclosure Changes, February 2017
GASB 68: How Will State Unfunded Pension Liabilities Affect Big Cities?, Center for Retirement Research, January 2016
Retirement System ACFR Preparation Checklist, Government Finance Officers Association

Publications and Resources, Association of Public Pension Fund Auditors
Why Governmental Accounting and Financial Reporting Is--And Should Be--Different, GASB
Overview of GASB Statements 73, 74, and 75, Milliman

See More

GASB Implementation Resources including guides, webinars, reports, analyses, etc.

Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What's New at NASRA: Balancing Stability and Sustainability: A Closer Look at Public Pension Contribution Policies

How public employers fund their pension plans has long-term implications for fiscal health and retirement security. NASRA’s latest publication explores the two primary models used across the nation—variable-rate and fixed-rate employer contribution policies—and how public pension systems are adapting these models to navigate evolving fiscal and demographic challenges.