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GASB accounting

The Governmental Accounting Standards Board has updated the reporting standards for pensions and other postemployment benefits obligations. Employers are encouraged to review the changes and determine their eff​​ect on the financial statements. CalSTRS has compiled resources to help understand the new guidelines and changes needed to implement them.

GASB 67/68: Pension benefits reporting 

In June 2012, the Governmental Accounting Standards Board issued two new accounting standards that significantly changed the way pensions are reported:

  • Statement No. 67, Financial Reporting for Pension Plans, was implemented by CalSTRS in its fiscal year 2013-14 financial statements.
  • Statement No. 68, Accounting and Reporting for Pensions, is effective for plan employers in fiscal year 2014-15.

Under previous standards, the pension obligation calculated for funding purposes and financial reporting were closely aligned. GASB 67 and 68 break the link between funding and financial reporting by moving from an approach that focuses on the process by which employers finance their future projected cash outflows for pension benefits, to one that stresses the obligation an employer incurs through the employment-exchange process.

Significantly, the employers’ collective pension obligation, which was previously only disclosed in the notes to CalSTRS financial statements, will be reported as a liability in the employers’ financial statements.

In an effort to assist employers with their implementation of these standards, we have certain resources necessary to meet the reporting requirements. For more information see the GASB Statement Nos. 67 and 68 FAQ or contact Financial Reporting at FinancialReporting@CalSTRS.com.

For GASB 67 and 68 pronouncements, implementation guides and other resources, please refer to www.gasb.org.

CalSTRS resources

FAQ and financial statements

Webinars

Employer guides and references

GASB 68 Educational MaterialJob Aid – Reconciliation of Employer Contributions
GASB 74/75: Postemployment benefits reporting 

The Governmental Accounting Standards Board has issued two new accounting standards that significantly change the way Other Postemployment Benefits are reported:

  • Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, was implemented by CalSTRS in its fiscal year 2016-17 financial statements.
  • Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, is effective for plan employers in fiscal year 2017-18.

GASB 74 and 75 reflect a fundamental overhaul in the standards for accounting and financial reporting for postemployment benefits other than pension. These standards break the link between funding and financial reporting by moving from an approach that focuses on the process by which employers finance their future projected cash outflows for OPEB, to one that stresses the obligation an employer incurs through the employment-exchange process.

In an effort to assist employers with their implementation of these standards, we have certain resources necessary to meet the new reporting requirements. For more information see the GASB Statement Nos. 74 and 75 FAQ or contact Financial Reporting at FinancialReporting@CalSTRS.com.

For GASB 74 and 75 pronouncements, implementation guides and other resources, please refer to www.gasb.org.

CalSTRS resources

FAQ and financial statements

Employer guides and references