Statement No. 26
Financial Reporting for Postemployment Healthcare Plans Administered by Defined Benefit Pension Plans
(Issued 11/94)

Summary

This Statement establishes financial reporting standards for postemployment healthcare plans administered by state and local governmental defined benefit pension plans. It is an interim Statement pending completion of the GASB's project on accounting and financial reporting of other postemployment benefits by plans and employers. Financial reporting requirements for pension assets and benefits administered by defined benefit pension plans are included in related Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans (pension plan reporting standards).

This Statement requires defined benefit pension plans that administer postemployment healthcare plans to present (a) a statement of postemployment healthcare plan net assets, (b) a statement of changes in postemployment healthcare plan net assets, and (c) notes to the financial statements, all in accordance with the pension plan reporting standards. This Statement also establishes certain requirements for plans that elect to provide historical trend information about the funded status of the postemployment healthcare plan and the employer's required contributions to the plan, either as supplementary information or in an additional financial statement(s) or notes. However, presentation of that information is not required.

The provisions of this Statement are effective for periods beginning after June 15, 1996. Early implementation is encouraged; however, Statement 25 should be implemented in the same fiscal year.

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Unless otherwise specified, pronouncements of the GASB apply to financial reports of all state and local governmental entities, including general purpose governments, public benefit corporations and authorities, public employee retirement systems, utilities, hospitals and other healthcare providers, and colleges and universities. Paragraph 3 discusses the applicability of this Statement.