GASB 45 Alternative Measurement Method


Government employers are required to perform a valuation of other post-employment benefits (OPEBs) to satisfy GASB Statement 45. The OPEB valuation process can be expensive and time intensive, particularly for smaller employers. However, GASB offers a simplified approach called the Alternative Measurement Method for employers with fewer than 100 active and retired plan members. Although plan sponsors give up several levels of sophistication and forgo an actuarial certification, the cost for the AMM is typically less and the results may be available earlier. Please visit our FAQ page to find out whether you're eligible to use the AMM.

If you do not meet AMM eligibility guidelines, GASB Assist will perform an actuarial valuation of your OPEB obligations and ensure that you fulfill GASB 45 reporting requirements.

AMM Service Packages
GASB Assist offers two client service packages employing the Alternative Measurement Method; Limited Assistance and Guided Assistance.

Valuation Process for the Alternative Measurement Method
Whether you choose the Limited or Guided Assistance package, our process includes the following steps:

  • Assemble plan and participant detail to prepare the valuation
  • Select assumptions (e.g., turnover, retirement age, discount rate and/or medical trend rate) based on simplified AMM guidelines
  • Derive the actuarial value of benefits for active and retired employees
  • Generate the reports necessary to satisfy GASB 45 requirements, including financial information and footnote disclosures
  • Post a copy of your report(s) in your secure login area* on our website

*All GASB Assist clients are given their own secure, private login area (PLA) on our website for submitting plan and employee data and for corresponding with our actuaries. This is true whether you've selected the Limited or Guided Assistance package or an actuarial valuation.

This collaborative online environment includes dedicated areas for downloading and uploading files, sharing project updates, client/account manager communications and tracking overall progress against key milestones.

Meet the Team