For Immediate Release: March 13, 2017
Employer/auditor inquiries: Jack Dianis, Director of Finance, (603) 410-3656; email@example.com
Media inquiries: Marty Karlon, Public Information Officer, (603) 410-3594; firstname.lastname@example.org
CONCORD, NH – The New Hampshire Retirement System (NHRS, the retirement system) has released two reports for Fiscal Year 2016 related to Governmental Accounting Standards Board (GASB) Statement No. 68, which impacts financial reporting for participating employers.
The reports are:
- GASB Statement No. 68 Employer Reporting Accounting Schedules (June 30, 2016) (“GRS Report”) – Prepared by Gabriel Roeder Smith & Company (GRS), the retirement system’s independent actuary.
- Schedule of Employer Allocations and Schedule of Pension Amounts by Employer (June 30, 2016) (“KPMG Report”) – Prepared by NHRS and audited by KPMG, the retirement system’s independent external auditor.
KPMG auditors have tested the information in the employer schedules in the GRS Report and issued an unmodified, clean opinion in their audit report. Employers should use the schedules in both reports; the KPMG Report to prepare the financial statements, footnote disclosures, and required supplementary information (RSI) and the GRS Report to obtain the sensitivity analysis and schedule of deferred inflow and outflows by year.
Both reports are available at: https://www.nhrs.org/employers/gasb/gasb-67-68-reports
In conjunction with the release of the reports, NHRS has also updated a document explaining how to read the reports, which is available at the above link.
These GASB 68 reports are valid for all employers, regardless of when an employer’s fiscal year ends.
Although GASB 68 only impacts financial accounting, NHRS recognizes that the release of reports that include proportionate shares of the retirement system’s net pension liability and pension expense for each employer has the potential to spur questions or concerns. NHRS wants to emphasize that regardless of what the proportionate share and pension expense is, those numbers are for accounting and financial reporting purposes only and do not impact future NHRS employer contribution rates or local property tax rates. The retirement system has a statutory funding schedule to pay down its Unfunded Actuarial Accrued Liability (UAAL) through 2039, which is not affected by GASB 68.
Additional reference materials:
NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries. The State of New Hampshire and more than 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers. NHRS has approximately 48,000 active members and 33,000 pension recipients. NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the Internal Revenue Code.
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