Frequently Asked Questions

GASB is the Governmental Accounting Standards Board. It is responsible for setting standards that establish generally accepted accounting principles (GAAP) for governmental financial statements. All STRS Ohio employers publishing financial statements on a GAAP basis will be required to adhere to the standards of GASB 68 and 75.

The objectives of GASB 68 and 75 are to improve the accounting and reporting by governmental employers who offer pension and other post-employment benefits to their employees. The standards are intended to improve transparency and accountability and to standardize actuarial practices in reporting pension and other post-employment obligations.

GASB 68 applies to governmental employers who participate in a pension plan covered by the provisions of GASB 67 (such as STRS Ohio) and who prepare published financial statements on an accrual basis using generally accepted accounting principles (GAAP). GASB 68 applies to most STRS Ohio employers beginning with the fiscal year ending June 30, 2015.

GASB 75 applies to governmental employers who participate in a pension plan that provides other post-employment benefits (health care) covered by the provisions of GASB 74 (such as STRS Ohio) and who prepare published financial statements on an accrual basis using generally accepted accounting principles (GAAP). GASB 75 applies to most STRS Ohio employers beginning with the fiscal year ending June 30, 2018.

No. These standards only impact the accounting and financial reporting of pension and OPEB obligations for governmental employers. Contribution rates and funding requirements are not impacted by GASB 68 or 75. Employers will continue to pay the contribution rates as defined in Ohio statute, and the State Teachers Retirement Board will continue to determine what portion, if any, of the employer contribution is allocated to the Health Care Fund.

STRS Ohio will calculate the net pension liability based on an actuarial valuation as of the end of each fiscal year (June 30). An actuarial valuation of future benefits payable to current active and inactive employees for past periods of service will be discounted using a blended discount rate. The difference between the actuarial valuation of future benefits and STRS Ohio’s fiduciary net position (net assets) will be the net pension liability.

STRS Ohio will calculate the net OPEB liability based on an actuarial valuation as of the end of each fiscal year (June 30). An actuarial valuation of future health care benefits payable to current active and inactive employees for past periods of service will be discounted using a blended discount rate. The difference between the actuarial valuation of future benefits and STRS Ohio’s Health Care Fund fiduciary net position (net assets) will be the net OPEB liability.

Each year after STRS Ohio calculates its net pension and OPEB liability, we will prepare and issue an allocation schedule showing the total contributions from all employers, each employer’s contributions and each employer’s percentage of the total contributions. STRS Ohio will also prepare and issue a schedule of pension amounts and a schedule of OPEB amounts showing the allocation of pension and OPEB amounts for each participating employer.

These reports should be available approximately eight to nine months after the measurement date. The reports can be found in Employer Self Service (ESS) under “GASB Reports” in the Additional Tools menu. View instructions for accessing GASB reports in ESS.