GASB Issues Statement No. 71 To Address Issue Caused By Statement No. 68
The Governmental Accounting Standards Board (GASB) has issued GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Statement No. 71 addresses an issue regarding the application of the transition provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
Under Statement No. 68, state and local government employers will be required to recognize the underfunded status of defined benefit pension plans as a net pension liability. Statement No. 68 will be effective for fiscal years beginning after June 15, 2014.