In addition to pensions, many state and local governmental employers provide other post-employment benefits (OPEB) as part of the total compensation offered to attract and retain the services of qualified employees. OPEB includes post-employment healthcare, as well as other forms of post-employment benefits (for example, life insurance) when provided separately from a pension plan. Government Accounting Standards Board (GASB) No. 45 issued June 2004 establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local government employers.

Effective Dates & Transition
Unless otherwise specified, the GASB applies to financial reports of all state and local governmental entities, including general purpose governments, public benefit corporations and authorities, public employee retirement systems, colleges and universities, public utilities, hospitals, and other healthcare providers. It generally provides for prospective implementation - that is, employers set the beginning net OPEB obligation at zero as of the beginning of the initial year. The GASB is effective for periods beginning:

• after December 15, 2006 for phase 1 governments (total annual revenues of $100 million or more)
• after December 15, 2007 for phase 2 governments (total annual revenues of $10 million or more, but less than $100 million)
• after December 15, 2008 for phase 3 governments (total annual revenues of less than $10 million)