GASB issued a technical bulletin that clarifies the requirements for calculating the annual required contribution (ARC) adjustment under GASB Statement no. 27, Accounting for Pensions by State and Local Governmental Employers, and Statement no. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.
Technical Bulletin no. 2008-1, Determining the Annual Required Contribution Adjustment for Postemployment Benefits, applies to situations in which the actuarial valuation separately identifies the actual amount that is included in the ARC related to the amortization of past employer contribution deficiencies or excess contributions to a pension or other postemployment benefit (OPEB) plan. The technical bulletin encourages using the actual amount, if known, for the ARC adjustment in place of the estimation procedures of Statement no. 27 and Statement no. 45.
The technical bulletin can be purchased at www.gasb.org.