What is GASB 45?
The Governmental Accounting Standards Board (GASB) is a non-profit entity that sets accounting standards for state and local governments in the United States. GASB is similar to the professional boards that set accounting standards for private sector entities and the federal government. Under GASB 45, at some point during the next few years, governmental entities will be required to release financial statements that include an actuarial valuation of unfunded retiree health liabilities. The GASB Statement 45 is an accounting standard, not a legal requirement for governments to change anything about current public retiree health benefits or their funding. Nevertheless, under state and local laws, as well as bond agreements, most governments must release financial statements that comply with GASB rules, such as GASB 45, each year. The provisions of GASB Statement 45 took effect at the start of 2007. Over the next several years, state and local governments must compile data about their ret
