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

GASB 68 Unfunde d Pe nsion L iability Purdue Unive rsity Audit and I nsuranc e Co mmitte e July 16, 2015

Accounting Standards • 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 our 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. 2

GASB 68 Net Pension Liability ($ Millions) PERF 1 14,104 Total Plan Assets $ 16,732 Total Plan Liabilities Net Pension Liability $ 2,628 Net Pension Liability $ 2,628 2.82% Purdue's Share of Total Net Pension Liability 2 74 $ Deferred Inflow 19 93 Purdue's Share of Total Unfunded Liability $ Purdue Share of Total Unfunded Liability $ 93 2 Liability Recorded on 6/30/2014 Balance Sheet Adjustment to be Reflected on 6/30/2015 Financial Report $ 91 1 Based on FY 2014 unaudited PERF plan information provided by INPRS 2 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 3