GASB 67 and GASB 68: A Narrative Literature Review of Pension Liability Measurement and Disclosure

Abstract

This article provides a review of GASB 67 and 68 literature, focusing on two areas: pension liability measurement and pension disclosures requirements. The authors searched for research articles on these topics from EBSCO and Google Scholar using the keywords Pension and GASB for the period 2011 to present. The review evaluates the current state of research on GASB pension standards, assessing their impact on enhancing the measurement, disclosures, and resulting accountability and transparency of public pensions. Research indicates support for the use of the blended discount rate to measure pension obligations; however, some studies suggest that the rate is still high, potentially undervaluing pension liabilities. The standards’ disclosure requirements are found to have improved transparency, compelling governments to alter their behavior to mitigate the adverse effects.