12-02-05 By the Way . . . FCMAT Conducts Retiree Benefits Survey

Volume 18 For Publication Date: December 2, 2005 No. 24

By the Way . . .

FCMAT Conducts Retiree Benefits Survey. In 2004, the Governmental Accounting Standards Board (GASB) issued two new policies, GASB 43 and 45, that direct how state and local governments (including school districts, county offices of education, and community college districts) must account for and report nonpension retirement benefits such as health insurance. For K-12 and community college districts, the GASB policy requires each district to include its long-term liabilities for postretirement benefits in its annual financial statement.

The Legislative Analyst’s Office, in its February 2005 report, provided a perspective on and recommendations for how to address this important liability. State level policy makers are beginning to address this issue as well.

However, there is very little reliable statewide data that is accurate and timely on this matter. As a result, the Fiscal Crisis Management and Assistance Team (FCMAT) is conducting a survey to gather information that can be shared with the educational community and state policy makers in order that informed decisions may be made to address the retiree health benefits issue.

If you have not already done so, we encourage you to share your district- or county office-specific information relating to postretirement benefits with FCMAT. To access the online survey, go to http://www.fcmat.org and click on the “Retiree Health Benefits Survey” button.