GASB 68  Accounting and
Financial Reporting for Pension 
Audit Committee Meeting 
Dec 1, 2015 
Presented by 
Accounting & Financial Reporting
Department 


1

Overview 
Pension expense  annual employer contributions (per plan
rates) 
New financial line items on balance sheet 
Net pension asset/liability 
Deferred outflow/inflow of resources 
Changes in actuarial assumptions 
Changes in economic and demographic experience 
Difference between actual and expected investment earnings 
Changes in proportionate share (cost-sharing plans) 
Employer contributions made subsequent to the plan's measurement date,
but before the Port's fiscal year end (i.e. July 1 to Dec 31 for DRS plans) 
Other revenue from special funding situation (WA State subsidy) 
Net position 
Restricted = Net pension asset 
Unrestricted = Net pension liability
Pension expense no longer ties to employer's contributions to the plan. 
2

Defined Benefit Pension Plans 
Report   Pension
Type of defined                            Annual   unfunded  expense =
benefit pension      Plan     No. of  GASB   employer  pension  Employer
plan      administrator(s)  plans Standards contribution  liability contribution
Washington State
Multiple-employer Department of                  $11 M to
4   GASB 68           Yes     No
cost-sharing      Retirement Systems                $12 M
(DRS)
Multiemployer    Various union         ED: Project  $6 M to
16                  No     Yes
(Taft-Hartley plans) pension trust(s)         No. 34-3E    $7 M
Port of Seattle -
GASB 67
Single-employer   Warehousemen's    1            $1.5 M     Yes      No
and 68
Pension Trust (WPT)
ED = Exposure draft 
DRS plans include PERS 1, PERS 2/3, LEOFF 1 AND LEOFF 2 
GASB 68 applies to DRS and WPT pension plans. 
3

2014 Restatement 
GASB 68 - 2014 restated financials (in millions)
Income Stmt            Balance Sheet
Before -                           Deferred Deferred
Beg Bal
2014  Pension  Other  Pension Pension Outflow  Inflow
of Net
% of  Pension Expense Revenue  Asset  Liability (Prepaid (Unearned
Position
Plans   Plan  Expense                         expense) revenue)
PERS 1  0.84% $ 3.9 $ 4.6             $ 42.4 $ 2.1 $ 5.3 $ (44.8)
PERS 2/3 1.00% $ 4.7 $ 3.7             $ 21.1 $ 3.8 $ 22.3 $ (40.6)
LEOFF 1 0.07%        $ (0.1)       $ 0.9             $ 0.3 $ 0.4
LEOFF 2 1.02% $ 1.5 $ (1.1) $ 0.5 $ 13.8       $ 0.8 $ 7.4 $ 5.0
WPT  100% $ 1.5 $ 0.4          $ 11.1 $ 0.2      $ (12.9)
TOTAL      $ 11.6 $ 7.5 $ 0.5 $ 14.7 $ 74.6 $ 6.9 $ 35.3 $ (92.9)
Note: WPT Pension expense is classified as nonoperating expense. 

Net Position (equity) is reduced by $92.9M as one-time restatement and Pension
Expense is decreased by $3.6M under GASB 68. 
4

2015 Preliminary Financials 
GASB 68 - 2015 financials (in millions)
Income Stmt         Balance Sheet
Before -                           Deferred Deferred
2015  Pension  Other  Pension Pension Outflow*  Inflow
% of  Pension Expense* Revenue  Asset  Liability (Prepaid (Unearned
Plans   Plan  Expense*                         expense) revenue)
PERS 1  0.87% $ 4.2 $ 4.2             $ 45.6 $ 2.5 $ 2.5
PERS 2/3 1.09% $ 5.4 $ 5.3             $ 38.8 $ 9.7 $ 10.4
LEOFF 1 0.07%        $ (0.2)       $ 0.9             $ 0.1
LEOFF 2 1.07% $ 1.6 $ (0.8) $ 0.3 $ 11.0       $ 1.9 $ 3.5
WPT  100% $ 1.5          not available yet
TOTAL      $ 12.7 $ 8.5 $ 0.3 $ 11.9 $ 84.4 $ 14.1 $ 16.5
* Figures are estimated based on annualized 2015 financial information available through 9/30/15 
2015 vs. 2014: 2015 included a $5.2M deferred outflow from changes in actuarial assumptions and
changes in experience. Thus, this two years comparison does not suggest a trend in Pension
Expense reduction. 
Pension Expense is decreased by $3.9M under GASB 68. 
5

QUESTIONS? 

6