It also shows corresponding contributions as a percentage of total employer contributions (including employer contributions made by the State of California as a nonemployer contributing entity to the State Teachers’ Retirement Plan) for the fiscal year. Schedule A shows each employer’s contributions to the nearest dollar as calculated by CalSTRS along with any additional allocated contributions. Employers can use this report to calculate a proportionate share factor of the MPP Program NOL. CalSTRS prepares the Schedule of proportionate share of contributions for employers and nonemployer contributing entity (Schedule A) in CalSTRS’ Other Pension Information (OPI) report, to assist employers with meeting the requirements of GASB 68. Members who were receiving a disability allowance, but were not actively employed are also eligible, as long as the Division was completed prior to the time the member reached normal retirement age.ĭue to the unique approach by which the MPP Program is funded, each employer may have different accounting policies for determining their proportionate share of the NOL, OPEB expense, and deferred inflows and outflows. Members who were receiving a disability allowance, and were actively employed at the time of the Division, must meet all of the same criteria as above. If the Division was held on or after January 1, 2001, and the member was less than 58 years old at the time of the Division, they must have elected to receive Medicare coverage. If the Medicare Division was held before January 1, 2001, the member is eligible. Members who retired on or after January 1, 2001, but before July 1, 2012, must meet all of the criteria above and must have retired from an employer who held a Medicare Division. Members who retired or were receiving a disability allowance prior to January 1, 2001, are eligible to have CalSTRS pay their Medicare Part A premium and Part B surcharges. These members must be enrolled in Medicare Part A or B, and must be ineligible to receive premium free Medicare A coverage on their own. The CalSTRS MPP Program is available to eligible members of the Defined Benefit (DB) Program who are 65 years or older. In addition, employers are required to present more extensive note disclosures and required supplementary information about their net OPEB liability. This standard is applicable to the employers who participate in the MPP Program and requires employers to report a liability equal to their proportionate share of the collective OPEB liability for all entities participating in CalSTRS’ cost-sharing plan on the face of the financials. It applies to the GAAP-based financial statements of employers and became effective for the fiscal years beginning after June 15, 2017. GASB 75 replaced GASB 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, established standards of accounting and financial reporting for defined benefit OPEB and defined contribution OPEB that are provided to the employees of state and local governmental employers through OPEB plans that are administered through trusts or equivalent arrangements. The statement also requires additional disclosure and supplementary information to be included in the OPEB plan’s financial statements. The standard requires the establishment of a net OPEB liability to be measured as the total OPEB liability, less the amount of the OPEB plan’s fiduciary net position. GASB 74 is applicable to CalSTRS which administers an OPEB plan called the Medicare Premium Payment (MPP) Program. CalSTRS first implemented this standard in our Annual Comprehensive Financial Report for the fiscal year ended June 30, 2018. It became effective for financial statements for fiscal years beginning after June 15, 2016. GASB 74 replaced GASB 43, Financial Reporting for Post-Employment Benefit Plans Other Than Pension Plans, as amended, and GASB 57, OPEB Measurements by Agent Employers and Agent Multiple- Employer Plan. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes financial reporting standards for state and local governmental other postemployment benefit (OPEB) plans – defined benefit OPEB plans and defined contribution OPEB plans that are administered through trusts or equivalent arrangements.
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