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GASB Chair Discusses Postemployment Benefits

In his latest edition of “From the Chairman”, the Governmental Accounting Standards Board’s (“GASB”) David Vaudt discusses how important it is for governmental entities to calculate the discount rate for measuring the net liability for postemployment benefits. The focus of Vaudt’s letter is the long-term expected rate of return, which he considers fundamental in determining the discount rate. Vaudt says that the long-term expected rate of return must be based on the nature and combination of present and anticipated postemployment benefit investments.

Check out Vaudt’s full comments on GASB.org.

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