Gains and Losses on Pensions, Other Retirement 

Benefits or Other Post Employment Benefits 

Assumption Changes

PREPARED BY:

UNITED STATES STANDARD GENERAL LEDGER DIVISION

ACCOUNTING SYSTEMS AND STANDARDS DIRECTORATE

GOVERNMENTWIDE ACCOUNTING

BUREAU OF THE FISCAL SERVICE

U.S. DEPARTMENT OF TREASURY
Version History

Version

Number Date Description of Change Effective TFM

1.0 6/6/2011 Original version. TFM S2-10-02
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 3 of 11

June 6, 2011

Background

Effective in fiscal year 2010, a Gains/Losses on long-term assumptions line was added to the 

Statement of Net Cost. The line was added to implement Statement of Federal Financial 

Accounting Standard No. 33 (SFFAS), Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from Changes in Assumptions and 

Selecting Discount Rates and Valuation Dates. 

Statement of Federal Financial Accounting Standard No. 33 requires that gains and losses from 

changes in assumptions long-term obligations be highlighted on the Statement of Net Cost. 

Highlighting the gains and losses will provide more transparent information regarding the 

underlying costs associated with these liabilities. The standard applies to agencies that report 

liabilities and expenses for federal employee pensions, other retirement benefits (ORB), and 

other postemployment benefits (OPEB) including veterans’ compensation, in general purpose 

financial reports. The Statement does not apply to the Federal Employees Compensation Act 

program. (Reference: SFFAS No. 33)

The standard also requires disclosure of the components of the expense associated with federal 

employee pension, ORB, and OPEB liabilities in the notes to the financial statements. Such 

disclosure will provide useful information for analysis. The information will be comparable 

across agencies and between postemployment and retirement programs. Notes to the financial 

statements are not addressed in this scenario.

The FY 2010 and FY 2011 Statement of Net Cost crosswalk prepared by the USSGL Division, 

included a new line (Line 4: (Gains)/Losses on pension, ORB or OPEB Assumption changes) to 

implement SFAS No. 33. USSGL Accounts, 7190, Other Gains, and 7290, Other Losses, was 

crosswalked to the line with a footnote, indicating to only report the portion of the balance in the 

account related to the change in long-term assumptions used to estimate actuarial liabilities. All 

other amount balances recorded in the accounts should be reported on the appropriate lines on 

the Statement of Net Cost. 

To clearly capture the gains and losses amount and to eliminate the crosswalk footnote, the 

USSGL Division created four new USSGL Accounts to capture amounts related to the gains and 

losses on changes in long term assumptions. The accounts are illustrated in this scenario. 
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 4 of 11

June 6, 2011

USSGL ACCOUNTS

Effective FY 2012

Account Title: Gains on Changes in Long-Term Assumptions – From Experience

Account Number: 7171

Normal Balance: Credit

Definition: The gain on the change in long-term assumptions from experience used to estimate 

Federal employee pension, other retirement benefit, and other postemployment benefit liabilities, 

including veteran’s compensation. This account excludes amounts related to Federal Employees 

Compensation Act program.

Justification: The USSGL Statement of Net Cost crosswalk was revised to display costs related 

to gains and losses from changes in long-term assumptions displayed separately from other costs 

on the statement. The change included adding a new line (4) to the Statement of Net Cost, 

effective fiscal 2010. SFFAS No. 33, Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from changes in Assumptions and 

Selecting Discount Rates and Valuation Dates (paragraph 1) indicates this change. (Reference: 

OMB Circular No. A-136, August 2010). Furthermore, actuarial gains and losses should be 

broken into two subcomponents (1) from experience and (2) from assumption changes. 

Account Title: Losses on Changes in Long-Term Assumptions – From Experience

Account Number: 7172

Normal Balance: Debit

Definition: The loss on the change in long-term assumptions from experience used to estimate 

Federal employee pension, other retirement benefit, and other postemployment benefit liabilities, 

including veteran’s compensation. This account excludes amounts related to Federal Employees 

Compensation Act program.

Justification: The USSGL Statement of Net Cost crosswalk was revised to display costs related 

to gains and losses from changes in long-term assumptions displayed separately from other costs 

on the statement. The change included adding a new line (4) to the Statement of Net Cost, 

effective fiscal 2010. SFFAS No. 33, Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from changes in Assumptions and 

Selecting Discount Rates and Valuation Dates (paragraph 1) indicates this change. (Reference: 

OMB Circular No. A-136, August 2010). Furthermore, actuarial gains and losses should be 

broken into two subcomponents (1) from experience and (2) from assumption changes. 
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 5 of 11

June 6, 2011

Account Title: Gain on Changes in Long-Term Assumptions

Account Number: 7271

Normal Balance: Credit

Definition: The gain on the change in long-term assumptions used to estimate Federal employee 

pension, other retirement benefit, and other postemployment benefit liabilities, including 

veteran’s compensation. This account excludes amounts related to Federal Employees 

Compensation Act program.

Justification: he USSGL Statement of Net Cost crosswalk was revised to display costs related 

to gains and losses from changes in long-term assumptions displayed separately from other costs 

on the statement. The change included adding a new line (4) to the Statement of Net Cost, 

effective fiscal 2010. SFFAS No. 33, Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from changes in Assumptions and 

Selecting Discount Rates and Valuation Dates (paragraph 1) indicates this change. (Reference: 

OMB Circular No. A-136, August 2010). Furthermore, actuarial gains and losses should be 

broken into two subcomponents (1) from experience and (2) from assumption changes. 

Account Title: Losses on Changes in Long-Term Assumptions

Account Number: 7272

Normal Balance: Debit 

Definition: The loss on the change in long-term assumptions used to estimate Federal employee 

pension, other retirement benefit, and other postemployment benefit liabilities, including 

veteran’s compensation. This account excludes amounts related to Federal Employees 

Compensation Act program.

Justification: The USSGL Statement of Net Cost crosswalk was revised to display costs related 

to gains and losses from changes in long-term assumptions displayed separately from other costs 

on the statement. The change included adding a new line (4) to the Statement of Net Cost, 

effective fiscal 2010. SFFAS No. 33, Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from changes in Assumptions and 

Selecting Discount Rates and Valuation Dates (paragraph 1) indicates this change. (Reference: 

OMB Circular No. A-136, August 2010). Furthermore, actuarial gains and losses should be 

broken into two subcomponents (1) from experience and (2) from assumption changes. 
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 6 of 11

June 6, 2011

REVISED USSGL ACCOUNTS

Effective FY 2012

Account Title: Other Gains

Account Number: 7190 

Normal Balance: Credit

Definition: The gain on assets resulting from events other than disposition. This excludes 

amounts related to the gain on the change in long-term assumptions from experience and 

gain on the change in long-term assumptions for Federal employee pension, other 

retirement benefit, and other postemployment benefit liabilities, including veteran’s 

compensation. This account includes amounts related to Federal Employees Compensation 

Act program.

Justification: Modified definition to exclude amounts reported in USSGL accounts 7171, 

“Gains on changes in long-term assumptions – From Experience” and 7271, “Gain on changes in 

long-term assumptions.” 

Account Title: Other Losses

Account Number: 7290 

Normal Balance: Debit 

Definition: The loss on assets resulting from events other than disposition. This excludes 

amounts related to the losses on the change in long-term assumptions from experience and 

losses on the change in long-term assumptions for Federal employee pension, other 

retirement benefit, and other postemployment benefit liabilities, including veteran’s 

compensation. This account includes amounts related to Federal Employees Compensation 

Act program.

Justification: Modified definition to exclude amounts reported in USSGL accounts 7172, 

“Losses on changes in long-term assumptions – From Experience” and 7272, “Losses on changes 

in long-term assumptions.” 
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 7 of 11

June 6, 2011

Listing of USSGL accounts used in this scenario

Account 

Number Account Name

2610 Actuarial Pension Liability

2620 Actuarial Health Insurance Liability

2630 Actuarial Life Insurance Liability

2690 Other Actuarial Liabilities

3310 Cumulative Results of Operations

6800 Future Funded Expenses

7171 Gains on changes in long-term assumptions – From Experience

7172 Losses on changes in long-term assumptions – From Experience

7271 Gains on changes in long-term assumptions

7272 Losses on changes in long-term assumptions

USSGL PROPRIETARY ACCOUNT ATTRIBUTE TABLE

USSGL 

Account 

Number

Normal 

Balance

Fed/Non

Fed

Trading 

Partner

Exch/ 

Nonexch

Budget 

Subfunction

Cust/ 

Noncust

Entity/ 

NonEnt

Covered/

Not Cov

Program 

Indicator

Budgetary 

Impact Ind

7171 C N X P

7172 D N X P

7271 C N X P

7272 D N X P

ATTRIBUTES REQUIRED FOR FACTS II REPORTING 

OF DETAILED FINANCIAL INFORMATION 

USSGL 

Account 

Number

Balance 

Sheet

Net Cost Net 

Position

Custodial 

Activity

Reclass 

Balance 

Sheet

Reclass 

Net Cost

Reclass 

Net 

Position

7171 32, 33 4 9.1, 9.2 4

7172 32, 33 4 9.1, 9.2 4

7271 32, 33 4 9.1, 9.2 4

7272 32, 33 4 9.1, 9.2 4
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 8 of 11

June 6, 2011

A beginning trial balance is not applicable in this scenario.

1. To record the liability for cost to be funded in the future related to federal pensions, 

ORB and OPEB, including veterans’ compensation.

DR CR TC

Budgetary Entry

None

Proprietary Entry

6800 Future Funded Expenses

 2610 Actuarial Pension Liability

 2620 Actuarial Health Insurance Liability

 2630 Actuarial Life Insurance Liability

 2690 Other Actuarial Liabilities

150,000

20,000

40,000

60,000

30,000

B420

2. To record a gain on change in long-term assumptions related to federal pensions, ORB 

and OPEB, including veterans’ compensation.

DR CR TC

Budgetary Entry

None

Proprietary Entry

2610 Actuarial Pension Liability

2620 Actuarial Health Insurance Liability

2630 Actuarial Life Insurance Liability

2690 Other Actuarial Liabilities

 7171 Gains on changes in long-term assumptions – From Experience

 7271 Gains on changes in long-term assumptions

10,000

7,000

8,000

9,000

25,000

 9,000

D570
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 9 of 11

June 6, 2011

3. To record a loss on change in long-term assumptions related to federal pensions, ORB 

and OPEB, including veterans’ compensation.

DR CR TC

Budgetary Entry

None

Proprietary Entry

7172 Losses on changes in long-term assumptions – From Experience 

7272 Losses on changes in long-term assumptions

 2610 Actuarial Pension Liability

 2620 Actuarial Health Insurance Liability

 2630 Actuarial Life Insurance Liability

 2690 Other Actuarial Liabilities

19,000

5,000

5,000

8,000

6,000

5,000

D571

Pre-closing Adjusted Trial Balance 

Debit Credit

Budgetary

None

Total -0- -0-

Proprietary

2610 15,000

2620 41,000

2630 58,000

2690 26,000

6800 150,000

7171 25,000

7172 19,000

7271 9,000

7272 5,000

Total 174,000 174,000
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 10 of 11

June 6, 2011

Closing Entries 

1. To record the closing of losses and miscellaneous items into cumulative results of 

operations.

DR CR TC

Budgetary Entry

None

Proprietary Entry

7171 Gains on changes in long-term assumptions – From Experience

7271 Gains on changes in long-term assumptions 

 3310 Cumulative Results of Operations

 7172 Losses on changes in long-term assumptions – From Experience

 7272 Losses on changes in long-term assumptions

25,000

9,000

10,000

19,000

5,000

F340

2. To record the closing of revenue, expense, and other financing source accounts to 

cumulative results of operations.

DR CR TC

Budgetary Entry

None

Proprietary Entry

3310 Cumulative Results of Operations

 6800 Future Funded Expenses 

150,000

150,000

F336

Post-closing Trial Balance

USSGL Account Debit Credit

Budgetary

None

Proprietary

2610 15,000

2620 41,000

2630 58,000

2690 26,000

3310 140,000

Total 140,000 140,000
Gains and Losses on Pensions, Other Retirement Benefits or Other Post 

Employment Benefits Assumption Changes

Page 11 of 11

June 6, 2011

Balance Sheet

Assets

15. Total Assets 0

Liabilities 

24. Federal Employee and Veteran Benefits (2610E, 2620, 

2630,and 2690E)

28. Total Liabilities

(140,000)

(140,000)

Net Position

33. Cumulative Results of Operations – Other Funds 

 (Note 21) (6800E, 7170E, and 7270E) 140,000

34. Total net position 140,000

35. Total liabilities and net position 0

Statement of Net Cost

Gross Program costs

Program A

1. Gross costs (note 22) (6800E) 150,000

2. Less: earned revenue 0

3. Net program costs (calc. line 1 minus 2) 150,000

4. (Gains)/Losses on pension, ORB or OPEB Assumption 

changes (7170 and 7270)

(10,000)

5. Net program costs including assumption changes (sum of 

 Lines 3 through 4)

140,000

8. Net cost of operations (calc. line 5) 140,000

Statement of Changes in Net Position

Budgetary Financing Sources

6. Non Exchange Revenue 

14. Total Financing Sources (calc. line 6) 0

15. Net Cost of Operations (+/-) 140,000

16. Net Change (calc. line 14 minus 15) 140,000

17. Cumulative Results of Operations (sum of lines 3 and 16) 140,000

Unexpended Appropriations:

26. Total Unexpended Appropriations 0

27. Net Position (sum of lines 17 and 26) 140,000