GASB 68 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 require public agencies to report pension liabilities in their financial statements. For SCERS employers, these requirements are found in GASB Statement No. 68.
GASB 68 Actuarial Valuation
What the GASB 68 Report Is
Each year, SCERS provides a GASB 68 Accounting Valuation Report to all participating employers. This report gives them the detailed information they need to comply with financial reporting standards. Specifically, it shows each employer’s proportionate share of SCERS’ total net pension liability, as well as related deferred inflows and outflows of resources.
By including this information in their financial statements, employers demonstrate to taxpayers, credit rating agencies, and the public that pension obligations are being measured and reported in a transparent way.
How It Is Prepared
The GASB 68 report is closely tied to SCERS’ annual actuarial valuation. The same actuarial data that determines contribution rates also feeds into the calculation of each employer’s 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 68 Matters
For employers, the GASB 68 report is an essential compliance tool that helps meet their reporting requirements. 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 68 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.