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Other Postemployment Benefits

Welcome to the Department of Finance & Administration, Division of Accounts OPEB information sharing website.

Other post-employment benefits (OPEB) refers to the benefits, other than pensions, that a state or local government employee receives as part of his or her package of retirement benefits.

In June 2015, the Governmental Accounting Standards Board (GASB) approved the issuance of two new Statements that are designed to improve the usefulness of information about OPEB in the general purpose external financial reports of state and local governmental plans for making decisions and assessing accountability.

GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, applicable for fiscal years beginning after June 15, 2017, addresses accounting and financial reporting by government employers.

Currently, the state of Tennessee administers four OPEB plans covering employees of the state primary government, state component units, local education agencies and other local governments and is therefore subject to the requirements of this statement. These plans are the Employee Group, Teacher Group, Local Government and Tennessee OPEB Plans.

GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, applicable for fiscal years beginning after June 15, 2016, addresses financial reporting by plans that administer OPEB benefits on behalf of governments  Annual valuation reports are required to be obtained for any OPEB plans that are administered through qualifying trusts. Currently, the state administered Employee Group OPEB Plan is the only plan subject to these financial reporting  requirements. The state prepares a stand-alone financial report for this plan.

The State of Tennessee has engaged an actuary to provide the valuation reports required by these standards for all employers participating in the four state administered OPEB plans. Based on these reports, the state has also prepared suggested journal entries, note disclosures and required supplementary information for each participating employer to assist in accounting and reporting for their individual OPEB liability, expense, and related deferred inflows and outflows.

The state provides these suggested entries and disclosures for the convenience of each employer.   The management of each individual employer remains responsible for understanding the results presented in the actuarial reports, for determining the required entries and disclosures; and, for properly applying the applicable provisions of the GASB standards to their financial statements. It is recommended that employers utilize the services of their internal and external auditors to assist in this process.

The plan valuation reports that consolidate the employer results for Statement No. 75, the valuation report that covers the Statement No. 74 reporting requirements for the trusted OPEB plan; and, the stand-alone financial report for the trusted OPEB plan can be found below.

Individual employer valuation reports, as well as information on suggested journal entries and disclosures can be found by navigating through the employer group tabs.  If you or your auditors have any questions regarding the information provided, contact Ike Boone at 615-741-9803 or at Ike.boone@tn.gov.

The state of Tennessee’s participation in the Employee Group, Teacher Group, and Tennessee OPEB Plans requires that the accounting and financial reporting requirements of GASB 74 and 75 be followed in the preparation of its Comprehensive Annual Financial Report.

The following schedule will provide readers with information regarding the obligation of the state’s primary government in each of the three plans, as well as the obligations of the state’s component units that also participate in one or more of these plans. The included component unit employers are the University of Tennessee system, the institutions that makes up the State University and Community College system, the Tennessee Housing Development Agency and the Tennessee Student Assistance Corporation. Neither the state primary government nor these component unit employers have an obligation for the Local Government OPEB Plan. 

The state has prepared the required journal entries, note disclosures and required supplementary information for the aforementioned component unit employers. These files can be located beneath the table below.

The plan valuation reports that consolidate the individual employer results are located under the General Information tab.

State component unit employers that participate in the Local Government OPEB Plan will find their reporting information under the Local Government tab. 

Summary of Actuary Reports for Health Plans and Related Information
                                           June 30, 2020 (unaudited)    
                                           (Expressed in thousands)

    State Plan   Teacher Plan   Tennessee Plan (Medicare Supp)   Total All Plans
                 
State Obligation                
                 
Net/Total OPEB Liability    $642,512    $232,296    $397,714    $1,272,522
Total OPEB Expense    $   55,289    $   17,886    $  23,649    $     96,824
                 
State Component Units Obligation                
                 
Net OPEB Liability    $309,668            $309,668
Total OPEB Expense    $  15,751            $  15,751
                 
Total Net/Total OPEB Liability    $952,180    $232,296    $397,714    $1,582,190
Total OPEB Expense    $   71,040    $  17,886    $  23,649    $   112,575

Retired teachers participate in the Teacher Group OPEB Plan, and the Tennessee OPEB Plan.

A data table of required annual reporting information for local education agency (LEA) employers can be found below. Each line contains the reporting instructions, suggested journal entries, other disclosures, and individual valuations for each plan that the employer participated in for the indicated fiscal year.

Employers can search this information by typing in complete or partial names and the table will display reporting information for all employers with that combination of letters. Results for the most recent three fiscal years will remain available.

The provided actuarial valuation reports were obtained to satisfy the reporting requirements of GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The suggested journal entries, note disclosures and required supplementary information files were prepared as a convenience to assist LEA employers with reporting in compliance with Statement No. 75.

The management of each individual employer remains responsible for understanding the results presented in the actuarial reports, for determining the required entries and disclosures; and, for properly applying the applicable provisions of the GASB standards to their financial statements. It is recommended that employers utilize the services of their internal and external auditors to assist in this process.

The plan valuation reports that consolidate the individual employer results are located under the General Information tab.

If you or your auditors have any questions regarding the information provided, contact Ike Boone at 615-741-9803 or at Ike.boone@tn.gov. 

Fiscal Year Ended Employer Name Instructions TGOP Journal Entries and Disclosures TNP Journal Entries and Disclosures TGOP Valuations TNP Valuations

Local government retired employees participate in the Local Government OPEB Plan, and the Tennessee OPEB Plan.

A data table of required annual reporting information for local government (LG) employers can be found below. Each line contains the reporting instructions, suggested journal entries, other disclosures, and individual valuations for each plan that the employer participated in for the indicated fiscal year.

Employers can search this information by typing in complete or partial names and the table will display reporting information for all employers with that combination of letters. Results for the most recent three fiscal years will remain available.

The provided actuarial valuation reports were obtained to satisfy the reporting requirements of GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The suggested journal entries, note disclosures and required supplementary files were prepared as a convenience to assist LG employers with reporting in compliance with Statement No. 75.

The management of each individual employer remains responsible for understanding the results presented in the actuarial reports, for determining the required entries and disclosures; and, for properly applying the applicable provisions of the GASB standards to their financial statements. It is recommended that employers utilize the services of their internal and external auditors to assist in this process.

The plan valuation reports that consolidate the individual employer results are located under the General Information tab.

If you or your auditors have any questions regarding the information provided, contact Ike Boone at 615-741-9803 or at Ike.boone@tn.gov. 

 
Fiscal Year Ended Employer Name Instructions LGOP Journal Entries and Disclosures TNP Journal Entries and Disclosures LGOP OPEB Valuations TNP OPEB Valuations