New Pension Accounting Requirements Could Lead to Increased Taxes and Cuts for Public ProgramsAugust 26, 2013
Local Governments and Businesses Must Work to Understand the Real Implications of the New Government Accounting Standards Board (GASB) Rules, Says Video From Marks Paneth
NEW YORK, NY--(Marketwired - Aug 26, 2013) - New Government Accounting Standards Board (GASB) rules are coming that will require localities to be more uniform in the way they report pension obligations. If misunderstood, there could be some fallout: funding for public programs could be cut and taxes could increase. To minimize and manage it, government officials will need to clearly understand the implications and become better educators.
In a video, Warren Ruppel, Partner in the Nonprofit and Government Services Group at Marks Paneth , explains the impacts for…
- Government officials.If a locality's unfunded liability is high, there may be pressure to increase funding into the pension plan, which could result in increased taxes or cuts in funding for public programs. Officials will also need to clearly communicate to ratings agencies that implementing the GASB requirement has an accounting, not economic, impact.
- Businesses.Businesses contracting with municipalities may need to deal with shrinking budgets, if governments choose to increase funding for their pensions.
- Taxpayers. If more dollars are diverted to funding pensions, taxpayers should be prepared for funding for public projects to be cut -- or for an increase in taxes if their locality's pension obligation is significant.
Knowing what to expect from, and communicating about, the new GASB pension accounting rules can reduce headaches. This increased transparency will, in the long run, be good for cities, businesses and the economy.
The video, "Implications of New Pension Reporting Requirements," is available at http://www.markspaneth.com/publications/implications-of-new-pension-reporting-requirements.
For more information, or to speak with Warren Ruppel, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at (212) 255-8386 or Katarina@sommerfield.com.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 32nd largest accounting firm in the nation and the 16th largest in the New York area. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the third year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.