GASB Implementation Report – Colorado PERA Karl Greve, Chief Financial Officer Colorado PERA’s Mission Statement To promote long-term financial security for our membership while maintaining the stability of the fund

Agenda GASB 68 Implementation Date Definition of Terms GASB 68 Impact of Cost-Sharing Plans on Employers Colorado PERA Implementation Efforts Audit Developments GASB Implementation Guide

GASB 68 Implementation Date GASB 68 – Employer Reporting – For year ended June 30, 2015 and after

Definition of Terms Net Pension Liability (NPL)—Each employer’s proportionate share of the total plan unfunded liability (Total Pension Liability minus the Pension Plan’s Net Position)

Definition of Terms Pension Expense—Changes in NPL, recognized in the current reporting period. There are some exceptions that include changes due to differences between expected and actual experience and changes in actuarial assumptions, which are amortized over time

Definition of Terms Deferred outflows/inflows – Generally, these are unamortized changes due to differences between expected and actual experience and changes in actuarial assumptions, which are recognized in pension expense in future periods

GASB 68 Impact of Cost-Sharing Plans on Employers Cost-sharing plan – A multiple-employer plan which pools assets and liabilities. Plan assets can be used to pay benefits of the employees of any employer in the plan GASB 68 – Requires each employer to report its proportionate share of the NPL, pension expense, and pension related deferred outflows/inflows of resources

GASB 68 Impact of Cost-Sharing Plans on Employers Proportionate Share – An employer’s proportionate share should be determined consistent with the manner in which contributions to the pension plan are determined Example: Current year employer’s plan contributions as a percentage of the current year total plan contributions

GASB 68 Impact of Cost-Sharing Plans on Employers Extensive note disclosures Required Supplemental Information (RSI) 10-year Schedule of Proportionate Share of the Net Pension Liability 10-year Schedule of Contributions Additional notes to RSI are required

Colorado PERA Implementation Efforts PERA GASB Work Team Employer Interactions Set up new employer contact list for financial reporting contacts Surveyed employers Held employer roundtable meeting Made presentations to various organizations in state Responding to preliminary questions from employers

Colorado PERA Implementation Efforts Education and Communication Developing guide for governing bodies Developing web-based educational program Available for auditors and employer staff Overview session Governing body overview Impact and calculations – Technical Video Series

Colorado PERA Implementation Efforts Data Generation and Allocation Issues with definition of employer Test calculations based on statements Begin development of data for proportionate share calculation Determination of discount rate Development of template/sample note disclosures Public Pension Financial Forum (P2F2) Set up monthly discussion group

Audit Developments AICPA State & Local Government Expert Panel Best practice document (Oct 2013) Cost-Sharing Multiple Employer Plans– audited statements Met with State Auditor’s office Met with CSCPA Governmental Issues Committee

GASB Implementation Guide Karl Greve member of advisory group to GASB 67 & GASB 68 implementation guides GASB work group reviews draft implementation guides and comments are forwarded to GASB staff GASB 68 implementation guide expected to be released January 2014

Get Engaged – Stay Involved Colorado PERA - GASB Reporting Standards web address https://www.copera.org/pera/employer/gasb.htm Colorado PERA - GASB Reporting Standards email GASBMail@copera.org