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Historical reference: FY2013 GASB 24 Agency Totals