The Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions:

• Requires employers participating in state and local government pension plans to report their proportionate share of the collective Net Pension Liability in their financial statements, as well as pension expense and deferred inflows and outflows of resources.
• Has no impact on funding—contributions will continue to be based on actuarially determined rates.

GASB’s position is that government employee pensions are a component of the employment relationship between the employer and employee; they are part of the employee compensation package. The employer’s participation in a pension plan provided by a separate entity or pension system, such as NYSLRS, does not limit the employer’s responsibility for the cost of these future pension benefits. When NYSLRS’ total pension liability is greater than the fair value of assets, employers have an accounting liability for the difference. Therefore, the employer’s share of the liability must be reported in their financial statements along with an associated pension expense.

If you prepare financial statements in accordance with Generally Accepted Accounting Principles (GAAP), you may need to follow GASB guidance and comply with GASB Statement No. 68. Consult with your accountant or an independent auditor.

To assist you with the information you need to report annually, NYSLRS calculates your employer allocation percentage or proportionate share, net pension liability, pension expense, deferred inflows/outflows and other related disclosures. Calculations are based on current actuarial and financial information. In addition, NYSLRS guides you with footnote disclosures. You can view your GASB report in Retirement Online.

For reference, review the Schedules of Employer Allocations and Schedules of Pension Amounts by Employer—March 31, 2025.

For more information on Statement No. 68, visit the GASB website or read the Office of the State Comptroller’s Division of Local Government and School Accountability Bulletin—Accounting and Financial Reporting for Pensions as Required by GASB 68.

Annual Census Data Audits

In response to GASB Statement No. 68, the American Institute of Certified Public Accountants (AICPA) recommends an annual audit of the plan’s census data, which supports the allocation of total pension liability reported in the annual financial statements and GASB No. 68 schedules.

Since the information we have on file is reported by our participating employers, NYSLRS’ auditors select a representative sample of participating employers and verify census data against employers’ payroll and human resource records.

If you are selected for an audit, NYSLRS will notify you and tell you what data you will be required to provide and how to submit the information directly to the NYSLRS secure portal. Generally, data to be verified may include a NYSLRS member’s:

• Date of birth;
• Date of hire or years of service;
• Pensionable compensation; and/or
• Date of termination or retirement and employment status (active, inactive, retired).

Rev. 9/25