The National Association of Counties (NACo) and the “Big
Seven” state and local government associations and the Government Finance
Officers Association (GFOA) released Pension
Funding Guide: A Guide for Local Officials to provide key facts about public pension plans and a
brief overview of which issues state and local officials should address. The guide explores why developing a pension
funding policy is essential and offers guidelines to follow when developing
that policy. Click here to view the press release that NACo issued on March 26.
Last year, the Governmental Accounting
Standards Board (GASB) issued new standards that focused on how state and local
governments should account for pension benefit costs but did not address how
employers should calculate the annual required contribution (ARC) necessary to
fund these pensions. To assist state and
local government employers, the “Big 7” and GFOA established a Pension Funding
Task Force (Task Force) to develop policy
guidelines. The policy objectives were
released last October.
The “Big 7” is a coalition of seven
national associations in Washington, D.C., whose members represent state and
local governments. Members of the “Big 7”
include the National Governors Association (NGA), the National Conference of
State Legislatures (NCSL), The Council of State Governments (CSG), the National
Association of Counties(NACo), the National League of Cities (NLC), The U.S.
Conference of Mayors (USCM) and the International City/County Management
In addition, the National Association
of State Auditors, Comptrollers and Treasurers (NASACT); the National
Association of State Retirement Administrators (NASRA); and the National
Council on Teacher Retirement (NCTR) serve on the Pension Funding Task Force.
The Center for State and Local Government Excellence (CSLGE) is the convening
Contact: Deseree L. Gardner 202.942.4204