Posted Sep 18, 2014 by Martin Armstrong
We have a major reform coming for the Pension field besides Obama trying to divert that money for infrastructure expenditure. The GASB Statement No. 68, Accounting and Financial Reporting for Pensions, was issued in June, 2012 and is effective for fiscal years beginning after June 15, 2014. This statement is an amendment to GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and GASB Statement No. 50, Pension Disclosures.
This goes into effect for most public pensions during FYE 2016 as many have a Sept-Aug fiscal year. They are just starting to evaluate the effect .
In other words, governments are going to have to report the degree of funding for pensions. This will heighten the insolvency problem and it is right on schedule for 2016.
Even in Canada, the Ontario government faces a potential bill of $400-million to bail out U.S. Steel Canada Inc. pensioners if the steel maker’s pension plans are not restructured. Then we have companies laying off people a few year before they qualify for pensions. The entire crisis is a real global mess.