Update: GASB reporting for FY2015 to be provided pursuant to GASB 68; target release date is August 31
JULY 28, 2015: For several months, the MTRS has been part of a working group that includes the State Comptroller's office, their outside consulting auditor, the state retirement board and the state's actuary, in an effort to coordinate and ensure our compliance with the new GASB Statement No. 68 reporting standards. GASB Statement No. 68, which is effective for fiscal year 2015, requires governments to reflect in their financial statements unfunded pension liabilities and annual pension expenses. GASB 68 also requires the Commonwealth to provide certain "on behalf" pension information to Massachusetts cities and towns whose teachers' pensions the Commonwealth is responsible for funding.
Through FY2014, the MTRS has provided our pension payment information under the GASB 24 reporting requirements; for FY2015, this information will be provided to you in accordance with GASB 68.
We are working towards finalizing our GASB 68 reporting requirements, as well as any associated attestations regarding that information. The goal of the working group is to release the GASB 68 reporting information for our school employers by August 31. As more information becomes available we will notify all of our employers.
August 12, 2014
Re: FY 2014 GASB 24 information
To all Massachusetts Municipal and Regional Treasurers:
This is a cooperative effort of the Massachusetts Teachers’ Retirement System (MTRS) and the Office of the State Comptroller (OSC) to inform you of the reporting requirements of a Government Accounting Standards Board (GASB). GASB Statement No. 24 “Accounting and Financial Reporting for Certain Grants and Other Financial Assistance” requires cities and towns to report pension payments made to city and town retirees by the Massachusetts Teachers’ Retirement System.
Simply stated, the Commonwealth makes a contribution to the MTRS on-behalf of educators employed by cities and towns in the Commonwealth who participate in the Massachusetts Teachers’ Retirement System. GASB 24 requires each city or town to recognize these “on-behalf” payments as revenue and a corresponding expenditure or expense and disclose the amounts recognized in your financial statements.
The MTRS paid a total of $2,020,477,093.13 in pension benefits during the period of July 1, 2013 through June 30, 2014 to retired educators. The amount listed on the table represents the amount that the MTRS paid in pension benefits on behalf of your city or town and should be reported as revenue and corresponding expenditure on your annual financial statement.
If you have any questions or concerns, please call me at 617-679-6831.
Thank you for your ongoing support.
Massachusetts Teachers’ Retirement System
Historical reference: FY2013 GASB 24 Agency Totals