Credit Ratings To Be Impacted by New GASB Rules on Public Employers' Retiree Health Plans
Public sector employers, like employers in the private sector, will soon have to start accruing the promise to provide retiree medical benefits during the working years of employees and recognize it as a financial obligation of the employer as mandated by the Governmental Accounting Standards Board (GASB).
These new accounting requirements apply to the financial reports of most public employers which include state and local governmental entities, including general purpose governments; public benefit corporations and authorities; public employee retirement systems; and public utilities, hospitals and other healthcare providers, and colleges and universities.
The credit implications of the new accounting rules are discussed in a new report issued by Fitch Ratings, the international ratings agency. Click here to download a copy of Fitch's Report.