STRS Ohio Finance Staff Details New Pension Reporting Rules
Another new GASB rule that will impact pension funds and sponsoring employers becomes effective in 2015, and will require the net pension liability to be reported in the financial statements of sponsoring employers. In STRS Ohio’s case, the proportionate share for employers throughout the state will be substantial. It is not yet clear how credit rating agencies will react to these new reporting requirements. While the amounts that employers are required to report will be large, STRS Ohio expects the retirement system’s funding to improve over time — due to pension reform changes — which would lower these liabilities for employers. Employers are paying these liabilities over a long period of time through their annual contributions of 14% of member compensation.
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