Last Friday, GASB proposed new guidance that would clarify the accounting and financial reporting of Internal Revenue Code Sec. 457, deferred compensation plans.
In a new exposure draft, GASB recommends that if a Sec. 457 deferred compensation plan meets GASB’s definition of a pension plan, then the appropriate GASB pension standards should be applied to the financial reporting for that plan and for the benefits provided through that plan. Current GASB guidance explicitly excludes Sec. 457 plans from the pension standards.
Find out all the guidance covers. Comments on the exposure draft are due by Sept. 27.