GASB 67 Valuation Report
Public pensions are not only accountable to their members—they are also a vital part of the financial reporting for the government employers who participate in the system. To ensure consistency and transparency, the Governmental Accounting Standards Board (GASB) established rules that focus on measurement and reporting of pension liabilities, emphasizing the need for full disclosure of pension plan assets and liabilities. For SCERS employers, these requirements are found in GASB Statement No. 67.
GASB 67 Actuarial Valuation
What the GASB 67 Report Is
Each year, SCERS provides a GASB 67 Accounting Valuation Report to all participating employers. This report specifies required approach to measure the pension liability of all participants’ contributions for benefits provided through the pension plan. Specifically, it shows SCERS’ total net pension liability, discount rate sensitivity, as well as related deferred inflows and outflows of resources.
This report is crucial for ensuring the pension plans report accurately and in compliance with GASB standards. They help assess the financial health of the pension plans and provide participating employers with information for decision making.
How It Is Prepared
The GASB 67 report is closely tied to SCERS’ annual actuarial valuation. The same actuarial data that determines contribution rates also feeds into the calculation of SCERS’ pension liability for accounting purposes. The figures are audited to ensure accuracy and are presented in a standardized format that complies with national accounting rules.
Employers use this information when preparing their Annual Comprehensive Financial Reports (ACFRs) and budgets. Having an accurate picture of pension obligations allows them to plan responsibly and provide a full accounting of their financial commitments.
Independent Audit
SCERS’ financial statements, including pension liability data, are subject to an independent annual audit. This audit provides assurance the information presented is reliable, actuarial methods are sound, and employers can confidently use the data in their own reporting.
Why GASB 67 Matters
For employers, the GASB 67 report is an essential tool that provides information for decision making and is essential to improve their financial reporting. For members, it is another layer of accountability, showing that SCERS’ obligations are fully recognized in the financial reporting of participating agencies. And for the public, it demonstrates that the cost of retirement benefits is tracked openly and responsibly.
By meeting GASB 67 standards each year, SCERS and its employers reinforce the financial integrity of the system, and build confidence that retirement promises are backed by transparent, audited data.
This report provides decision-useful information, creates transparency, and supports assessment of accountability.