City Bemoans New Pension Accounting Rules Slated For 2014

Although the city’s position remains fairly steady or even slightly improved regarding its pension system, city leaders last week bemoaned upcoming accounting standards changes that will force them to incorporate their projected pension liabilities into the city’s total debt burden.

Under the Government Accounting Standards Board’s new protocols for 2014, municipalities must show a ‘net position’ of their pension plans on any GASB-supervised balance sheets, including the required Comprehensive Annual Financial Report.

This position could be an asset, if the municipality’s pension investments exceed the current projected value of its future costs and payouts. If not, as is the case in Ocean City and most municipalities around the county, the position will be a liability.
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