GASB proposes changes for pension and deferred comp plans
The Governmental Accounting Standards Board issued a proposal Monday that would make some changes in how to define the criteria for the component units in pension plans and deferred compensation plans for state and local government employees.
The proposed statement aims to provide more consistency and comparability when reporting fiduciary component units when an organization lacks a governing board, and the primary government carries out the duties that a governing board typically handles.
The exposure draft, "Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans," tries to mitigate the financial reporting costs of certain defined contribution pension plans, defined contribution other postemployment benefit plans, along with other employee benefit plans.
The proposed standard also aims to improve the relevance and comparability of accounting and financial reporting for Section 457 deferred compensation plans that meet the definition of a pension plan, along with the benefits offered through such plans. It would supersede the remaining provisions of Statement No. 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans," as amended, for all Section 457 plans.
GASB is asking for comments on the proposal be submitted by April 10, 2020.