Important Things To Know About GASB 78
                     Important Things To Know 
About GASB 78 
Important Things To Know About GASB 78 
The Government Accounting Standard Board (GASB) issued 
GASB statement 78 – Pensions Provided through Certain Multi-
Employer Defined Benefit Pension Plans – in December 2015 
as a way of further enabling state and local government 
employers to obtain necessary measurements as well as 
information for some multi-employer defined benefits. 
The main aim of GASB 78 is to help governments that 
participate in certain private or federally sponsored multiple-
employer defined benefit pension plans by focusing on 
employer accounting and financial reporting requirements for 
the pensions on obtainable information.
Important Things To Know About GASB 78 
It is important to keep in mind that GASB 78 specifically 
applies to state and local government employers who provide 
defined pensions to their employees through a cost-sharing 
multi-employer defined benefit pension plan. 
The pension plan must not be a state or local government 
pension plan, it should be used to provide defined pensions to 
employees of state or local governments as well as to 
employees whose employers that are not state or local 
governments, and should have no predominant state or local 
government employer.
Important Things To Know About GASB 78 
In preparation for GASB 78 compliance, there are various 
things you need to do. If you use the economic measurement 
resource in preparing financial statements in your department, 
you will need to recognize pension expense that is equal to the 
amount needed by the employer to contribute to the pension 
plan for the reporting period. 
The pension expense also needs to be recognized for separate 
liabilities to the pension plan that comes up in the reporting 
period. 
Important Things To Know About GASB 78 
Remember to report a payable for unpaid required 
contributions as well as unpaid liabilities at the end of the 
reporting period. In case you use the current financial 
resources measurement focus to prepare financial statements 
in your department, you should recognize pension 
expenditures equal to the amount that the employer is 
supposed to contribute to the expansion that is associated 
with pay periods within the reporting period. 
For more information on GASB 78, visit our website at 
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Important Things To Know 
About GASB 78