GASB Statement No. 68 is a financial reporting standard that replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers. It requires participants in a multiple employer cost-sharing plan to:
The net pension liability is the amount of the total pension benefit that is not funded by investment assets. This net unfunded pension benefit will be a line item in your balance sheet. As a MPSERS participating employer you are required to record your proportionate share of the net pension liability. This liability is not new; it exists as a normal part of pension funding. A pension plan can have a net asset or net liability depending on whether it is overfunded or underfunded based on the value of its investments.
MPSERS has had a net pension liability since the early 2000s, worsened by the market losses in 2008 and 2009. While the goal of prefunding the pension is to be 100% funded, funding a pension benefit is very long term in nature. During this time span, it is normal for the retirement plan to be either overfunded or underfunded at any given point in time.
Each year, the pension plan's actuary calculates the amount of money needed to fund the accrued benefits of both active and retired members. This liability is compared to the market value of current assets. The net pension liability is the difference between the assets and the liability. The actuarial calculation is based on assumptions such as how long people work, how much they are paid, when they will retire, life expectancy, etc.
Where do I find my reporting unit's proportionate share of the net pension liability?
Table 1: Schedule of Pension Amounts by Employer provides the net pension liability (non-university or university employers) and the proportionate share of the net pension liability as of the measurement date (Sept. 30) for all employers. These tables are found on the GASB 68 Pension page in the Data Tables tab.
No. The UAAL is calculated based on the actuarial value of assets, while the net pension liability is calculated on the market value of assets. GASB 68 is concerned only with net pension liability. The net pension liability and the unfunded accrued actuarial liability numbers may look very similar but the difference is important in relation to GASB 68.
Beginning with the fiscal year ending Sept. 30, 2018, 100% of the UAAL rate stabilization payment is included in the statutorily required pension contribution. The payments are no longer part of the required OPEB contribution.
The FY 2023 and FY 2025 147c(2) one-time deposit payments will not be included in the required contributions by reporting unit (i.e. the basis for determining the proportionate shares), because they are not part of the Actuarially Determined Contribution in the valuation.
There are separate sets of data tables for pension and OPEB. Pension data tables are labeled 1-5 and OPEB tables are labeled 6-9. The tables related to pension are found on the GASB 68 section of the website and the tables for OPEB are found on the GASB 75 section.
All data tables have rows for each employer, with the information grouped under headings according to various required types of data.
N stands for non-university employers. K12 Districts, ISDs, Charter Schools/PSAs, Libraries, and Community Colleges should use tables N1 through N9.
U stands for university employers. University employers should use tables U1 through U9.
Table 1 is a schedule of pension amounts by employer. It shows pension contributions, proportionate share percent, net liability, and expense. The information is grouped under headings according to various required types of data.
Table 6 is the same schedule for the OPEB plan.
Tables N1 and U1 are found on the GASB 68 (pension) section of the website and Tables N6 and U6 are found on the GASB 75 (OPEB) section.
Use the appropriate tables for your employer type (N for non-university employers and U for university employers).
Table 2 is a schedule of deferred resources by year by employer for the pension plan. It provides the amounts of deferred resources that will be applied to the pension expense in future years. This information is required in your Notes to the Financial Statement.
Table 7 is the same schedule for the OPEB plan.
Tables N2 and U2 are found on the GASB 68 (pension) section of the website and Tables N7 and U7 are found on the GASB 75 (OPEB) section.
Use the appropriate tables for your employer type (N for non-university employers and U for university employers).
Tables 3 and 8 contain detailed information regarding the recognition of inflows and outflows of resources provided in Tables 1 and 2 and Tables 6 and 7.
Tables 4 and 9 contain detailed information regarding the recognition of deferred inflows and outflows of resources data provided in Tables 1 and 2.
Table 5 provides covered payroll as of Sept. 30, 2024, (the measurement date) and as of June 30, 2025, (the end of the employers' fiscal year). This information is needed to complete the Required Supplementary Information (RSI) schedules. Because this amount is the same for both pension and OPEB, Tables N5 and U5 should be used for both GASB 68 RSI schedules and GASB 75 RSI schedules.
Note: The employers' covered payroll is defined by GASB Statement No. 82 as payroll on which contributions to a pension plan are based; and by GASB Statement No. 85 as payroll on which contributions to the OPEB plan are based. For university employers, covered payroll for both pension and OPEB is the greater of 1) university payroll on which contributions to the plan are based (member and non-member payroll on which UAAL was required) or 2) the required minimum payroll amount required by PA 136 of 2016 (payroll floor). For non-university employers, covered payroll represents payroll on which contributions to both plans are based.
Specific guidance on using the data tables can be found in the Data tabs of the GASB 68 Pension and GASB 75 OPEB pages.
Employers are listed by their Reporting Unit number, not by their Michigan Department of Education Org number. Data is separated by employer type, with all universities in one set of tables and all non-universities (K12 districts, charter schools/PSAs, libraries and community colleges) in another, so it is important to use the correct table for your employer type.
Yes. The tables will be published on this website each year, in time for you to use them to prepare your financial statement. ORS will notify you when all the GASB 68 and 75 materials are ready for use each year.
