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GASB Statement No. 74 and 75

​​​(2024 Schedules Now Posted)

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GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pensions was issued in June 2015 and amended GASB Statement No. 43.  It became effective for plan financial statements for fiscal years beginning after June 15, 2016. TRS implemented GASB 74 with the 2017 Annual Comprehensive Financial Report (see “Financial Reports” section of the TRS Publications page on the TRS website to view the ACFR).

GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions was issued in June 2015 and amended GASB Statement No. 45.  It became effective for governmental financial statements of employers for fiscal years beginning after June 15, 2017.

Together these statements define how Other Postemployment Benefit (OPEB) 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 75 applies only to OPEB benefits and does not apply to pension-related liabilities.

Statement No. 75

The GASB 75 Schedules provided below are 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.  TRS is providing instructions and guidance needed to prepare journal entries at the same time.

Refer to the financial reporting guidance to be provided by your respective oversight agency for financial statement considerations.

The State Auditor’s Office audited the 2023 GASB 75 Schedules and the related Notes to the Schedules. A link to the 2023 Audited GASB 75 Schedules and Notes appears below.  On various tabs in the file are the: State Auditor’s opinion, Schedule of Employer’s Proportionate Shares (Allocations), Schedule of OPEB Amount​​s 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.

A Schedule of On-Behalf Contributions is provided which shows amounts to be recognized as revenue for each fiscal year for the amounts paid by the State of Texas as the non-employer contributing entity.  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 OPEB plan are determined.  TRS has determined that using one year of historical contributions is the best representation of this requirement.

For the TRS Care OPEB fund, either the State of Texas or the employer pays the employer contribution to the OPEB fund as established by the General Appropriations Act.  The State of Texas will be reporting its proportionate share of the Net OPEB liability as the non-employer contributing entity for the TRS Care OPEB fund.  The state’s share of the Net OPEB liability is 55 percent as of the measurement date of Aug. 31, 2023​.

The employer contributions include the following types of contributions:

Types of Contributions
Contribution Types
CS - TRS Care Surcharge
FI - Federal TRS-Care
RI - Reporting Entity TRS-Care Contributions

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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 74 and 75.  This is due in part to the fact that employer contributions are the basis for the allocation of the Net OPEB 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 75.  The links to the guidance appears below.

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.

Texas Education Agency​

Resources

GASB 75 Archived Schedules