GASB 45 Compliance Service
ASBSD has partnered with Gallagher Benefit Services, Inc. (GBS) to offer Governmental Accounting Standards Board (GASB) Statement Number 45 actuarial and consulting services. ASBSD members will receive substantial discounts due to the benefits of consolidated purchasing of services.
ABOUT GASB 45 SERVICES
Public school districts in the State that offer retiree health care, even if it is not directly subsidized by the district, may be subject to GASB 45. GASB 45's effective date depends on a district's annual revenue.
For those districts with annual revenue of $10 Million or less, initial GASB 45 compliance is fiscal year 2009-10. ASBSD's GASB 45 program will provide the full range of GASB 45 services needed by members, including calculation of all liabilities and providing the actuarial certification that will be required for your district's annual audit. Once your GASB 45 liabilities are determined, GBS can then provide any needed consulting services to assist in developing strategies to lower future GASB liabilities.
GETTING STARTED
To avoid a backlog of valuation requests near the end of the fiscal year, ASBSD suggests that districts start their GASB valuation processes as early as possible. The valuation can be done at any time during the fiscal year and satisfy GASB's requirements. Once completed, the valuation is valid for two or three full fiscal years, depending on the number of eligible employees and covered retirees.
To begin the valuation process, complete either the simplified online valuation or prepared the documents necessary to begin standard evaluation.
SIMPLIFIED ONLINE VALUATION TOOL
ASBSD and its actuarial partner, Gallagher Benefits Services, Inc. (GBS), are pleased to announce a new online GASB 45 actuarial valuation tool for those member districts that are eligible for the alternative (or simplified) measurement method permitted by the Governmental Accounting Standards Board (GASB).
To be eligible for the simplified method, your district must:
- Be a sole (single) employer; and,
- Be fully insured; and,
- Have fewer than 100 total plan members (including eligible employees in active service, terminated employees who have accumulated benefits but are not yet receiving them, and retirees that are currently receiving benefits); and,
- Only offer an implicit subsidy with no explicit (direct) subsidy for retiree health care benefits.
If you are unsure whether your district will qualify, the new online tool has a "Do I Qualify?" questionnaire, or you may consult with your school auditor.
STANDARD VALUATION
Those that do not qualify for the simplified valuation may begin their standard valuation by submitting the participation agreement. The document can be found in the sidebar.