(2024 Schedules Now Posted)
GASB Statement No. 67, Financial Reporting for Pension Plans amended GASB Statement No. 25. Statement No. 67 was issued in June 2012 and became effective for plan financial statements for fiscal years beginning after June 15, 2013. TRS implemented GASB 67 with the 2014 Annual Comprehensive Financial Report (see "Financial Reports" section of the Publication page on the TRS website to view the ACFR).
GASB Statement No. 68, Accounting and Financial Reporting for Pensions amended GASB Statement No. 27. Statement No. 68 was issued June 2012 and became effective for governmental financial statements of employers for fiscal years beginning after June 15, 2014.
Together these statements define how pension liabilities are calculated by plans and reported by employers and other non-employer contributing entities who prepare financial statements in accordance with Generally Accepted Accounting Principles (GAAP).
Note: Statement 68 applies only to pension benefits and does not apply to Other Postemployment Benefits (OPEB) or TRS-Care related liabilities.
Statement No. 68
The GASB 68 schedules that will be used for financial reporting for fiscal year 2024 have a measurement date of Aug. 31, 2023. TRS is providing instructions and guidance needed to prepare journal entries at the same time.
The State Auditor’s Office audited the 2023 GASB 68 Schedules and the related Notes to the Schedules. A link to the 2023 Audited GASB 68 Schedules and Notes appear below. On various tabs in the file are the: State Auditor’s opinion, Schedule of Employer’s Proportionate Shares (Allocations), Schedule of Pension Amounts by Employer and the related Notes to the Schedules.
The following schedules were not audited but provide detailed information that ties to the audited schedule.
Unaudited 2023 GASB 68 Schedule of Pension Expense Detail (xlsx)
Unaudited 2023 GASB 68 Schedule of Deferrals (xlsx)
Unaudited 2023 GASB 68 Plan Level Deferred Outflows and Inflows (pdf)
A Schedule of On-Behalf Contributions is provided which shows amounts to be recognized as grant revenue for each fiscal year for the amounts paid by the State of Texas as the non-employer contributing entity. This accounting treatment will be similar to that used for the Medicare on-Behalf payments for GASB 24 for public and charter schools. This schedule is UNAUDITED. A link to the Schedule of On-Behalf Contributions appears below.
Calculating the Proportionate Share
An employer's proportion is a measure of the proportionate relationship of (1) the employer to (2) all employers and all non-employer contributing entities. The basis for the employer's proportion should be consistent with the manner in which contributions to the pension plan are determined. TRS has determined that using one year of historical contributions is the best representation of this requirement.
For the TRS pension fund, either the State of Texas or the employer pays the employer contribution to the pension fund as established by the General Appropriations Act. The State of Texas will be reporting its proportionate share of the net pension liability as the non-employer contributing entity for the TRS pension fund as well as its proportionate share as the employer for senior colleges, universities and medical schools. The state’s total share of the net pension liability for both is 63 percent of the net pension liability as of the measurement date of Aug. 31, 2023.
The employer contributions include the following types of contributions:
| Contribution Types * | |
|---|---|
| CJ - Community and Junior Colleges | NM - New Members |
| EG - Education and General Funds | PS - Pension Surcharge |
| FG - Federal Funds/Private Grants | SM - Statutory Minimum |
| NE - Non-Educational/General Funds | |
| EC - Employer Contributions Surcharge - Public and Charter Schools | |
* ORP - Optional Retirement Program contributions are excluded from these contributions.
Audit Considerations
Each reporting employer should consult with their auditor to determine to what extent they will be able to rely upon the State Auditor’s Office audit work. There will continue to be an increased level of audit scrutiny on employer contributions as a result of GASB 67 and 68. This is due in part to the fact that employer contributions are the basis for the allocation of the net pension liability. It is also due to the fact that the audit standards under which the allocation schedule is subject to be audited require enhanced procedures. Refer to the AICPA audit references below for more details.
TRS has additional information to assist auditors working with TRS Reporting Employers in relation to audit steps associated with the census data testing for GASB 68. The links to the guidance appears below.
Report on Internal Controls on the 2023 GASB 68 and 75 Allocation Schedules (pdf)
Report on Internal Controls on the 2023 ACFR (pdf)
Annual Financial Report of Reporting Employer Financial Statements
The information provided above is for use in preparing fiscal year 2024 financial statements and uses a measurement date of Aug. 31, 2023. The one-year time delay is to allow time for preparation and audit of the related schedules.
Refer to the financial reporting guidance to be provided by your respective oversight agency for journal entries and other financial statement considerations.