At its July 27, 2011 Board meeting, the FASB made its final decision regarding a significantly reduced financial disclosure for employers participating in multiemployer plans. The revised FASB proposal eliminates the withdrawal liability disclosure and all disclosures for retiree health and welfare plans, as well as a number of other items that would be extremely burdensome for both employers and the plans to which they contribute. The revised disclosure focuses on contributions to the plans, the plans’ funding zones, and other information that should be available from the employer’s records, eliminating the need to request special calculations and other information from the plan administrators.
The FASB’s July 27, 2011 press release summarizing the final decision regarding multiemployer plan disclosures is posted on the FASB website. A final new accounting standard, documenting the decision reached at the July 27th meeting is expected by mid-September. The new standard will be effective for fiscal years ending after December 15, 2011 for public companies, and one year later for non-public companies.
Beginning last fall, Horizon Actuarial Services worked closely with a coalition of employers, financial statement users, and plan trustees to meet with, and educate, the FASB about the special nature of multiemployer plans and the need for a more workable financial disclosure. The FASB’s decision to simplify the disclosure requirements is a significant victory for multiemployer plans, contributing employers and participating unions.
Please contact your Horizon Actuarial consultant for additional information or if you have any questions.