1. 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

2. 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

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

4. 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)

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. Get Engaged – Stay Involved
Colorado PERA - GASB Reporting Standards web address
Colorado PERA - GASB Reporting Standards