Proposed GASB Rules Show Why Only Market Valuation Fully Captures Public Pension Liabilities

摘要

The Governmental Accounting Standards Board has released preliminary views on how public sector pension plans should value benefit liabilities. Because the GASB's proposals ignore government's contingent liability to pay plan benefits should assets fall short, they omit the full value of plan liabilities and contradict the GASB's own standard of "interperiod equity."