GASB 27 - short fiscal year

[Guest KennyH]

There doesn't seem to be much discussion of governmental DB plans, but maybe some of you are aware of guidance on dealing with this.

I have a governmental plan determining annual expense on a GASB 27 basis. They make a single annual contribution equal to the recommended funding contribution each year. However, during 2008 they switched from an off-calendar year to a calendar year fiscal year creating a short fiscal year ending 12/31/2008. The result is that during the short fiscal year they have made a contribution sufficient for 12 months which presumably will result in a net pension asset. It seems one approach toavoid this would be to reduce their next contribution (i.e. plan and fiscal year 2009) so we can say that the difference is due to timing differences. We are trying to avoid this since funding levels have dropped due to asset performance.

Is there any way to rely on the fact that the excess contribution was made during the short fiscal year and avoid establishing the NPA?

[david rigby]

Just first thought, it seems prudent to follow the other general practices that the govt entity is using to account for its short FY. Any help there?

I'm willing to be educated about other approaches or standards.