The Facts about GASB 43 and 45..... §          GASB 43 and 45. A new accounting standard that requires government employers to value Other Post Employment Benefits (OPEB) using accrual accounting rather than the pay-as-you-go approach. §         GASB 43 and 45 Factors. The following factors are key elements that drive your OPEB cost: ü      Medical care inflation; ü      Benefit design; ü      Health care cost factors such as age, gender, family size, geographic area; ü      Employee turnover rates; ü      Retiree contribution rates; ü      Benefit vesting and assumed retirement age; ü      Mortality; ü      Discount rate; ü      Salary scale assumptions; ü      Expected long-term (or short-term) rate of return on plan assets. §         Effective Date. Phase I implementation of the standard is required for governmental employers with total annual revenues over $100 million in fiscal years beginning after December 15, 2006. Phase II includes employers with revenues between $10 and $100 million; this group is required to implement GASB 45 in the following year. Entities with total annual revenues under $10 million are required to implement GASB 45 in fiscal years beginning after December 15, 2008. §         Background. Retiree health benefits have become the most important benefit issue facing governmental employers. They will need to estimate the current obligation, ascertain the impact of the new accounting standards, and examine various options that are available for controlling the costs §         Items included in GASB 43 and 45. All OPEB offered to active employees as well as retirees should be considered under GASB 43 and 45. This could include health insurance benefits , life insurance benefits, dental insurance benefits, vision plan benefits, sick-pay accruals.