GASB 68 Unfunde d Pe nsion L iability Purdue Unive rsity Audit and - - PowerPoint PPT Presentation

Purdue Unive rsity Audit and I nsuranc e Co mmitte e July 16, 2015

GASB 68 Unfunde d Pe nsion L iability

• Purdue University is subject to accounting standards established

by the Governmental Accounting Standards Board (GASB).

• Beginning 06/30/2015, per GASB 68, we are required to record
• ur share of the net pension liability of the PERF plan.

– Adjustment will reflect the liability calculation as of 6/30/2014

• Our share of the pension liability will adjust annually, based upon

PERF investment performance, PERF “experience” adjustments and payments made to fund the liability.

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Accounting Standards

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GASB 68 Net Pension Liability

($ Millions)

PERF1 Total Plan Assets $ 14,104 Total Plan Liabilities 16,732 Net Pension Liability $ 2,628 Net Pension Liability $ 2,628 Purdue's Share of Total Net Pension Liability2 2.82% $ 74 Deferred Inflow 19 Purdue's Share of Total Unfunded Liability $ 93 Purdue Share of Total Unfunded Liability $ 93 Liability Recorded on 6/30/2014 Balance Sheet 2 Adjustment to be Reflected on 6/30/2015 Financial Report $ 91 1 Based on FY 2014 unaudited PERF plan information provided by INPRS

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Purdue's proportionate share percentage is calculated by dividing the total salary $s of Purdue's participants in PERF by the total salary $s for all PERF participants