GASB Accounting Statements 67, 68, 74 & 75
Two methods are available for calculating experience gains and losses under GASB 67, 68, 74 and 75:
Data updated on the last day of the year (using a one-year Deterministic Forecast)
Data updated on the first day of the year (using a GASB Gain or Loss Event in a Valuation Set).
In both methods, experience gains and losses will reflect:
experience benefit payments, which are typically entered as an override under the Forecast Analysis topic
employer contributions based on the Contribution Policy topic
experience employee contributions, which are typically entered as an override under the Forecast Analysis topic
administrative expenses based on the Administrative Expenses topic.
If the data is updated on the last day of the year, a one-year Deterministic Forecast is required in order to calculate the net deferred inflows and outflows during the year. The liability gain or loss will compare expected liability to actual liability at the end of the year. The expected liability will be based on the liability as of the last day of the prior year. This liability will be determined as the sum of three items: the balance sheet liability, the net deferred inflows and outflows and the plan fiduciary net position. The actual liability at the end of the year will be the liability value in year one of the forecast. The asset gain or loss will compare the expected return on assets to the actual return on assets. The actual return on plan fiduciary net position will be input in the Deterministic Assumptions under the Investment Return, Inflation, Lump Sum & Alternate Benchmarks topic. Check the box to Use known asset values to override return.
If the data is updated on the first day of the year, a Valuation Set that contains a GASB Gain or Loss (End of year) Event is required. There may be only one GASB Gain or Loss (End of year) Event. The GASB Gain or Loss (End of year) Event should reference the Valuation run(s) to determine the actual liability as of the end of the year, before any plan or assumption changes. Enter any Override roll forward expected benefit payments to be used if the underlying run(s) are as of a date prior to the end of the year. The liability gain or loss will compare expected liability to actual liability at the end of the year. The expected liability will be determined using the baseline run(s) and the actual liability at the end of the year will be determined using the run(s) selected for the GASB Gain or Loss (End of year) Event. The asset gain or loss will compare the plan's expected fiduciary net position to the actual. The plan's expected fiduciary net position will be based on the assets input in the Asset and Funding Policy under the Initial Asset Values topic. The Actual end of year asset value (actual fiduciary net position as of the end of the year) is a required input in the GASB Gain or Loss (End of year) Event. GASB Assumption Change (End of year) or GASB Plan Change (End of year) Events can be measured after the GASB Gain or Loss (End of year) Event. The valuation runs(s) referenced in these events must be as of the same date as the GASB Gain or Loss (End of year) Valuation run(s). If the box to override roll forward expected benefit payments is checked for the GASB Gain or Loss (End of year) Event, the same benefit payment override will be used when rolling forward end of year liabilities for any assumption or plan change end of year Events.