OPEB - Net OPEB Liability (GASB 75) - Other Post-Employment Benefits
Recording the employer's Net OPEB Liability (NOL) for post-retirement healthcare, dental, and life insurance benefits promised to employees, with the corresponding deferred items and OPEB expense.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Net OPEB Liability (Government-Wide) | Liability (+) | - | 18,500,000.00 |
| Deferred Outflows - OPEB (Contributions After Measurement Date) | Deferred Outflow (+) | 450,000.00 | - |
| Deferred Inflows - OPEB (Actuarial Assumption Changes) | Deferred Inflow (+) | - | 1,200,000.00 |
| OPEB Expense (Government-Wide) | Expense (+) | 2,800,000.00 | - |
| Net Position - Restatement (If Adoption Year) | Net Position (-) | - | 20,050,000.00 |
💡 Accountant's Note
GASB 75 (effective 2017-18) applies the same on-balance-sheet treatment to OPEB (retiree healthcare) that GASB 68 applied to pensions. The NOL = Total OPEB Liability (actuarially determined) minus OPEB Plan Net Position (if any — many governments are pay-as-you-go with no trust fund). For pay-as-you-go governments, the NOL equals the full Total OPEB Liability. OPEB liabilities are often massive (sometimes larger than pension liabilities) because healthcare costs are volatile and governments rarely pre-fund them.
Practitioner & Systems Framework
💻 ERP Architecture
The GASB 75 disclosure requirements are nearly as complex as GASB 68. The government-wide ledger must record the NOL, deferred items, and OPEB expense. For pay-as-you-go plans with no trust, the Total OPEB Liability is the NOL. The actuarial valuation must be performed by an enrolled actuary (EA) using GASB 75-prescribed methods.
⚠️ Audit Flags
GASB 75 OPEB liabilities are frequently understated or omitted — particularly by smaller governments that lack awareness of the requirement or cannot afford the actuarial valuation. Auditors require an actuarial valuation report and assess the reasonableness of key assumptions (healthcare cost trend rates, discount rate, participation rates). Healthcare trend rate sensitivity is extremely material.
📄 Required Documentation
Actuarial valuation report (GASB 75 compliant), plan document describing OPEB benefits provided, employee census data submitted to actuary, NOL calculation, deferred outflows/inflows amortization schedules, OPEB expense calculation, note disclosure workpapers.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.