Update on LEOFF 1 Liability and GASB 45

Last session, the Legislature allocated funds to the Office of the State Actuary to develop a tool to help individual local governments identify their future liability for LEOFF 1 medical and long-term care costs. AWC is working with the State Actuary’s office as they determine the time-frame for development of the tool, the data they will need, the information the tool will provide, etc.

It is expected that the information provided by the Actuary will be most useful for smaller and medium-sized jurisdictions – helping them to identify the scope of their future liability, both for GASB 45 reporting purposes and so they can adequately prepare for funding that liability. Larger jurisdictions will likely want to contract for a complete actuarial analysis of their liability.

The largest jurisdictions – those whose total 1999 revenues exceeded $100 million – must implement GASB Statement 45 and account for this liability in their financial statements for fiscal year 2007. Smaller jurisdictions have a bit more time – those with revenues between $10 million and $100 million must report their liability in their financial statements for fiscal year 2008, and those with under $10 million in revenues must do so for fiscal year 2009.

We will keep you informed about the status of the State Actuary’s work on this tool.

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