Criteria for determining “substantively automatic” Ad-Hoc benefit

(Updated Service Credits (USC) and COLAs)

GASB 67/68 requires that the TPL reflect consistent patterns of ad hoc benefit (USC and COLAs) adoptions as if they are “substantively automatic” or repeating. Effective with the first adoption on or after January 1, 2015, ad hoc benefits will be considered substantively automatic in calculating the TPL if:

  • They have been granted 1 of the last 2 years; AND
  • They have been granted 2 of the last 5 years.