52794 Federal Register / Vol. 62, No. 196 / Thursday, October 9, 1997 / Notices

1Statement of Federal Financial Accounting

Standard Number 5, ‘‘Accounting for Liabilities of

the Federal Government.’’

2Pub. L. 95–595, ‘‘Federal Government Pension

Plans.’’

3Statement of Financial Accounting Standard No.

35 (SFAS 35), ‘‘Accounting and Reporting by

Defined Benefit Pension Plans.’’

which is currently located at http://

www.whitehouse.gov/WH/EOP/omb,

under the caption ‘‘Federal Register

Submissions.’’

G. Edward DeSeve,

Controller.

Interpretation Number 3 of Statement

of Federal Financial Accounting

Standards Number 5

Measurement Date for Pension and

Retirement Health Care Liabilities: An

Interpretation of SFFAS No. 5

Introduction

1. The Federal Accounting Standards

Advisory Board (FASAB) was asked to

endorse use of an actuarial valuation as

of the beginning of the fiscal year to

measure the pension and retirement

health care liabilities in general purpose

financial reports prepared pursuant to

Statement of Federal Financial

Accounting Standards Number 5

(SFFAS 5).1 This has been the practice

in some of the special purpose financial

reports on pension plans that are

prepared pursuant to Pub. L. 95–595.2

OMB and GAO issue instructions for

preparing the reports required by P.L.

95–595.

2. The plan reports called for by P.L.

95–595 receive scrutiny from

Congressional staff. Based on past

experience, some actuaries were

concerned that differences between

actuarial measurements used in

different reports would cause problems

and confusion.

Some people who support using a

beginning-of-year valuation also were

concerned about the potential for

disagreements between auditors and

preparers if projections or estimates

were used instead of a full actuarial

valuation.

Other people, on the other hand,

believed that measurements for

recognizing liabilities in financial

statements prepared pursuant to SFFAS

5 should be as of the end of the

reporting period, and that a

measurement based on a projection or

‘‘roll forward’’ of a full actuarial

valuation would be appropriate if it

were not feasible to perform a full

actuarial valuation as of year end.

Interpretation

3. Pension and retirement health care

liabilities in general purpose Federal

financial reports prepared pursuant to

SFFAS 5 shall be measured as of the

end of the fiscal year (or other reporting

period if applicable). This measurement

shall be performed following the end of

the period reported, but does not have

to be based on a full actuarial valuation

as of the end of the reporting period.

The measurement shall, however, reflect

the best available estimates of the major

factors that would be reflected in a full

actuarial valuation, such as the actual

pay raise, the actual cost of living

adjustment, and known material

changes in the number of employees

covered (enrollment) that cause a

change in the liability.

4. This measurement may be based on

an actuarial valuation performed as of

an earlier date during the fiscal year,

including a beginning-of-year actuarial

valuation, with suitable adjustments for

the effects of changes during the year in

major factors, such as the pay raise, cost

of living adjustment, etc. This is

sometimes referred to as a measurement

based on a ‘‘projection’’ or ‘‘rollforward’’ of the most recent available

actuarial valuation. In evaluating the

effect on the liability caused by changes

in enrollment for plans that cover

employees of more than one reporting

entity (e.g., CSRS, FERS), materiality

shall be assessed at the plan level. In

evaluating the effect on the liability

caused by changes in enrollment for

plans that cover employees of only one

reporting entity (e.g., Coast Guard,

Department of State), materiality shall

be assessed at the reporting entity level.

Scope of Interpretation

5. This interpretation applies to

pension and retirement health care

liabilities recognized in accordance with

SFFAS 5 in general purpose Federal

financial reports, such as financial

statements prepared pursuant to the

Chief Financial Officers Act of 1990, as

amended. It does not apply to reports on

pension plans pursuant to the

requirements of P.L. 95–595.

Effective Date

6. This interpretation shall be applied

for reporting periods that end on or after

September 30, 1997.

Appendix: Basis for Conclusions

7. SFFAS 5 defines standards for

recognition and measurement of

pension and retirement health care

liabilities, which are reported as of the

balance sheet date. Although SFFAS 5

does not explicitly discuss the

measurement date, its provisions

implicitly call for measurement at year

end. ‘‘Measurement’’ implies estimation

based on the best available information

at the time, but does not necessarily

require a full actuarial ‘‘valuation’’ as

that term is used by actuaries.

8. To avoid potential confusion,

ambiguity, or conflict with auditors,

some people would prefer to use a

beginning-of-year valuation (which is

permitted by private sector standards for

plan reporting pursuant to SFAS 35 3),

or at least would prefer to use

beginning-of-year enrollment while

updating the valuation for other changes

during the year (e.g., interest rate

assumptions, COLAs, salary increases),

which generally are more significant.

9. Changes in enrollment during the

year will rarely lead to a material

change in the liability, and that such

changes will, therefore, not be a factor

in some years. Nevertheless, in those

years when a material change in the

liability does arise because of a change

in enrollment during the year, that

change should be reflected in the

measurement. Conceptually there is no

reason to treat enrollment differently

from other factors used in the

measurement. Precise enrollment data

may not be readily available soon after

year end, when the measurement is to

be performed. However, this should not

normally present a problem because

absolute precision regarding enrollment

should not be necessary, given a

reasonable definition of materiality.

[FR Doc. 97–26869 Filed 10–8–97; 8:45 am]

BILLING CODE 3110–01–P

OFFICE OF PERSONNEL

MANAGEMENT

Proposed Collection; Comment

Request for Reclearance of an

Information Collection: Form RI 30–1

AGENCY: Office of Personnel

Management.

ACTION: Notice.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995

(Public Law 104–13, May 22, 1995), this

notice announces that the Office of

Personnel Management intends to

submit to the Office of Management and

Budget a request for reclearance of an

information collection. RI 30–1, Request

to Disability Annuitant for Information

on Physical Condition and Employment,

is used by retirees who are not age 60

and who are receiving disability

annuity. These retirees must provide

information about their medical

condition as OPM deems necessary to

continue their benefit. RI 30–1 requests
Federal Register / Vol. 62, No. 196 / Thursday, October 9, 1997 / Notices 52795

information about changes in the work

disabling condition. Approximately 8000 RI 30–1 forms

will be completed annually. We

estimate it takes approximately 60

minutes to complete the form. The

annual burden is 8000 hours.

Comments are particularly invited on:

—Whether this collection of information

is necessary for the proper

performance of functions of the Office

of Personnel Management, and

whether it will have practical utility; —Whether our estimate of the public

burden of this collection is accurate,

and based on valid assumptions and

methodology; and —Ways in which we can minimize the

burden of the collection of

information on those who are to

respond, through use of the

appropriate technological collection

techniques or other forms of

information technology.

For copies of this proposal, contact

Jim Farron on (202) 418–3208, or E-mail

to jmfarron@opm.gov

DATES: Comments on this proposal

should be received on or before

December 8, 1997.

ADDRESSES: Send or deliver comments

to— Lorraine E. Dettman, Chief,

Operations Support Division,

Retirement and Insurance Service, U.S.

Office of Personnel Management, 1900 E

Street, NW, Room 3349, Washington,

DC 20415.

FOR INFORMATION REGARDING

ADMINISTRATIVE COORDINATION—CONTACT:

Mary Beth Smith-Toomey, Management

Services Division, (202) 606–0623.

Office of Personnel Management.

Janice R. Lachance,

Acting Director.

[FR Doc. 97–26820 Filed 10–8–97; 8:45 am]

BILLING CODE 6325–01–P

OFFICE OF PERSONNEL

MANAGEMENT

Proposed Collection; Comment

Request for Reclearance of an

Information Collection: Form OPM

1536

AGENCY: Office of Personnel

Management.

ACTION: Notice.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995

(Public Law 104–13, May 22, 1995), this

notice announces that the Office of

Personnel Management intends to

submit to the Office of Management and

Budget a request for reclearance of an

information collection. Form OPM 1536,

Former Spouse’s Application for

Survivor Annuity Under the Civil

Service Retirement System, is designed

for use by former spouses of Federal

employees and annuitants who are

applying for a monthly Civil Service

Retirement System benefit. This

application collects information about

whether the applicant is covered by the

Federal Employees Health Benefits

Program and about any court order

which awards the applicant retirement

benefits.

Approximately 500 OPM Forms 1536

will be completed annually. We

estimate it takes approximately 30

minutes to complete the form. The

annual burden is 250 hours.

Comments are particularly invited on:

—whether this collection of information

is necessary for the proper

performance of functions of the Office

of Personnel Management, and

whether it will have practical utility; —whether our estimate of the public

burden of this collection is accurate,

and based on valid assumptions and

methodology; and —ways in which we can minimize the

burden of the collection of

information on those who are to

respond, through use of the

appropriate technological collection

techniques or other forms of

information technology.

For copies of this proposal, contact

Jim Farron on (202) 418–3208, or E-mail

to jmfarron@opm.gov.

DATES: Comments on this proposal

should be received on or before

December 8, 1997.

ADDRESSES: Send or deliver comments

to—Lorraine E. Dettman, Chief

Operations Support Division,

Retirement and Insurance Service, U.S.

Office of Personnel Management, 1900 E

Street, NW, Room 3349, Washington,

DC 20415.

FOR INFORMATION REGARDING

ADMINISTRATIVE COORDINATION CONTACT:

Mary Beth Smith-Toomey, Management

Services Division, (202) 606–0623.

U.S. Office of Personnel Management.

Janice R. Lachance,

Acting Director.

[FR Doc. 97–26821 Filed 10–8–97; 8:45 am]

BILLING CODE 6325–01–P

OFFICE OF PERSONNEL

MANAGEMENT

Proposed Collection; Comment

Request for Review of a Revised

Information Collection: Form RI 94–7

AGENCY: Office of Personnel

Management.

ACTION: Notice.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995

(Public Law 104–13, May 22, 1995), this

notice announces that the Office of

Personnel Management (OPM) intends

to submit to the Office of Management

and Budget a request for review of a

revised information collection. RI 94–7,

Death Benefit Payment Rollover

Election for Federal Employees

Retirement System (FERS), provides

FERS surviving spouses and former

spouses with the means to elect

payment of the FERS rollover-eligible

benefits directly or to an Individual

Retirement Account.

Approximately 700 RI 94–7 forms will

be completed annually. We estimate it

takes approximately 60 minutes to

complete the form. The annual burden

is 700 hours.

Comments are particularly invited on:

—whether this collection of information

is necessary for the proper

performance of functions of the Office

of Personnel Management, and

whether it will have practical utility;

—whether our estimate of the public

burden of this collection is accurate,

and based on valid assumptions and

methodology; and

—ways in which we can minimize the

burden of the collection of

information on those who are to

respond, through use of the

appropriate technological collection

techniques or other forms of

information technology.

For copies of this proposal, contact

Jim Farron on (202) 418–3208, or E-mail

to jmfarron@opm.gov

DATES: Comments on this proposal

should be received on or before

December 8, 1997.

ADDRESS: Send or deliver comments

to—John C. Crawford, Chief, FERS

Division, Retirement and Insurance

Service, U.S. Office of Personnel

Management, 1900 E Street, NW, Room

3313, Washington, DC 20415.

FOR INFORMATION REGARDING

ADMINISTRATIVE COORDINATION CONTACT:

Mary Beth Smith-Toomey, Management

Services Division, (202) 606–0623.

U.S. Office of Personnel Management.

Janice R. Lachance,

Acting Director.

[FR Doc. 97–26822 Filed 10–8–97; 8:45 am]

BILLING CODE 6325–01–P