Legislation Proposed Placing Federal Mandates on Public Pension ReportingRepresentatives Devin Nunes (R-CA), Paul Ryan (R-WI) and Darrell Issa (R-CA) introduced legislation December 2, which would impose onerous reporting requirements on state and local governments with regard to their defined benefit pension plans and challenges the validity of current state and local government accounting rules and practices. The bill, the Public Employee Pension Transparency Act, would require states and local governments to report to the U.S. Treasury Department their financial data using federally-proscribed methodologies and valuations, including, among other things, a “market value of liabilities.”
If a governmental plan sponsor does not confirm to these reporting requirements, their government, as well as the other governments the pension plan serves, would not be able to issue tax-exempt bonds nor receive subsidy payments available under the Build America Bonds and other direct subsidy-bond programs.
The GFOA will be working closely with the state and local government and public pension community to oppose the mandates set forth in the measure, as well as shed light on the adverse consequences of a “market value of liabilities” reporting approach for the public sector.
More Information - Press Release - GFOA and Other State and Local Government Organizations Oppose Federal Over-Reach
- Fact Sheet - GFOA Sets the Record Straight Regarding the Assertions Made in H.R. 6484
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