On June 23, the Governmental Accounting Standards Board (GASB) issued new guidance intended to improve state and local government reporting of 457 plans for their employees and retirees. A copy of Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans can be downloaded here.
According to GASB, the new statement sets out to:
- increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform;
- mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other post-employment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and
- enhance the relevance, consistency, and comparability of the accounting and financial reporting for Section 457 plans that meet the definition of a pension plan and for benefits provided through those plans.
NAGDCA is reviewing the new guidance and will provide analysis for members as soon as possible.