FASB ASC 715-60 Accounting Standard


FASB ASC 715-60 is the accounting standard for other post employment benefits (OPEB) including post retirement healthcare. The Financial Accounting Standards Board issued this accounting standard to define how the expense and liability for post retirement healthcare and other non-pension benefits must be recorded for financial statement purposes. The FASB ASC 715-60 standard requires the cost of post retirement healthcare benefits to be accrued generally over the employee’s working lifetime.

Purpose for establishing standards for financial accounting and reporting of employer OPEB benefits

For those without an accounting background, prior to the establishment of FAS 106 the common accounting practice for retiree healthcare and other non pension benefits (i.e. OPEB) was pay-as-you-go, i.e. the cost of OPEBs was recognized when the expense was paid. With this method, an OPEB plan’s income and expenses were not matched. As such, accounting for retiree benefits in this way didn’t provide an accurate financial picture of future OPEB liabilities in that it did not follow accrual accounting principles. The Financial Accounting Standards Board (FASB) established FAS 106 in 1990 so as to solve this problem.

Extensive OPEB experience

Since 1989, Hogue & Associates has consulted with private companies and non profit organizations on topics related to retiree helathcare benefits. We strive to help employers find ways to minimize their OPEB liability while maximizing employee and retiree benefits. 100% of our work is actuarial consulting on small plans. We serve clients from a broad range of sectors throughout the U.S.

GovernmentNonprofit /
Not for profit
School districtsReligious organizationsProduct manufacturers
California, Colorado, Louisiana, Montana, Oregon, Wisconsin, WyomingDioceses of the Catholic Church
Baptist Convention Affiliate
Christian Fellowship Organization
California, Colorado, Kentucky, Indiana, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, Wisconsin, Washington
UniversitiesPrivate schools and clubsService providers
California State University,
multiple campuses
California, New York, Pennsylvania, OhioMississippi
Cities / CountiesLabor UnionsNatural resource management
California, Minnesota, Wisconsin, WyomingInternational Brotherhood of Electrical Workers Union (IBEW)
National Electrical Contractors Association (NECA)
United Firefighters of Los Angeles City
Public Utility DistrictsElectric CooperativesFinancial institutions
Oregon, UtahKentucky, WyomingPennsylvania
Fire Protection DistrictsCommunity services agencies
LouisianaCalifornia, Maryland, New York, Tennessee
Housing and Port AuthoritiesProfessional Associations
California, MassachusettsHuman Resources, Aviation, Bowling
Fraternal Benefit Society

The following documents are for historical reference only as FAS 106 has been superseded by FASB ASC 715-60. Summary and Comments by J. Richard Hogue, F.S.A. is a paragraph by paragraph analysis of SFAS 106.

Society of Actuaries Health Section News January 2002

Society of Actuaries Pension Section News February 2002

Comments to Actuarial Standards Board RE: ASOP No. 6 Draft

Comments to Actuarial Standards Board RE: ASOP No. 6 Draft Revision

~ Additional FASB ASC 715-60 Resources ~

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