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Retirement board approves small reallocation in GASB 67 financial report
Summary
The Imperial County Employees' Retirement System board approved a technical revision to its GASB 67 financial reporting schedules after an actuary identified a misallocation of market‑value assets between employer groups; the change does not affect the plan’s funding valuation or contribution rates.
The Imperial County Employees' Retirement System (ISERS) board on March 19 approved a revision to its GASB 67 financial reporting schedules after consultants identified a small misallocation of market‑value assets between employer groups.
Actuary Andy Young of Siegel told trustees the change only affects the plan’s financial‑reporting schedules and does not alter the funding valuation used to set employer or employee contribution rates. “There’s no change to the funding report,” Young said. He explained the plan’s funding valuation uses a five‑year smoothing method for assets, while GASB 67 requires market value for financial reporting.
Young said the planwide net pension liability remained $126,000,000. The actuary reported that an original schedule had allocated about $30,000 too much in market assets to the safety employer group; fixing that allocation increased the calculated net pension liability for the general employers by about $20,000 and raised the reported expense in one schedule from $8,531,000 to $8,537,000. Young urged trustees to approve the revision so the plan’s financial numbers match across reports.
Trustee David H. Prince moved to approve the revised GASB 67 sections; Suzanne C. Bernidis seconded the motion. The board voted by voice; the motion carried.
Chris Jarvis, appearing as staff counsel in the agenda packet, had previously attached the revised schedules to the agenda. Board staff also reported they had discussed the correction with the plan auditor, Brown Armstrong, which advised ISERS that the change did not require reopening the audited financial statements; instead staff were told the adjustment can be disclosed as a footnote in next year’s audited results.
The board record shows this action was limited to correcting the asset allocation on the GASB 67 reporting schedules; Young and staff emphasized there was no impact to the funding valuation, employer contribution rates, or the valuation methods approved by the board in December 2024.
