A Guide to Implementing GASB 45


As larger local governments have begun to implement GASB 45, which was issued in 2004, there is much to learn from their experience. In North Carolina, for example, local governments with revenues over $100 million are following practices that may be instructive to smaller jurisdictions and to local governments in other states.

This issue brief examines data from a survey of North Carolina local governments to learn about how they have gone about implementing GASB 45. Among other questions, the survey asked local governments about their contracts with actuaries, those actuaries’ methods, and whether the governments consulted with bond-rating firms. Key findings include:

  • 88 percent of the respondents have a multi-year contract with an actuarial service selected by the NC League of Municipalities and the NC Association of County Commissioners.
  • The actuaries for all respondents applied a realistic discount rate.
  • When they are unsure if their bond rating might be affected, local governments take the initiative to seek advice from bond-rating firms.

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