GASB 75 is the accounting standard for employers’ reporting Other Postretirement Benefits (commonly referred to as OPEBs). It was developed and adopted by the Government Accounting Standards Board which is commonly referred to as GASB.
There are several, the following being the most significant:
Liability: The total OPEB liability is required by GASB 75 to be reflected on the balance sheet. GASB 45 required the total OPEB liability to be included as a footnote with only a portion of the total liability to be shown on the balance sheet.
Discount rate determination: While both GASB 45 and GASB 75 base the discount rate on a combination on the expected return of invested plan assets and employer assets, the rules for determining the discount rate under GABS 75 are more explicit.
Actuarial cost method: GASB 75 requires the use of the Entry Age actuarial cost method. There were six acceptable actuarial cost methods permitted under GASB 45.