In September of 2010, the Financial Accounting Standards Board (FASB) issued an Exposure Draft proposing new financial disclosure requirements for employers who contribute to multiemployer pension and health plans. The original FASB proposal required the disclosure of a significant amount of information — including an estimate of withdrawal liability — for employers participating in multiemployer pension plans.
At its May 31, 2011 Board meeting, the FASB reached a tentative decision regarding a significantly reduced financial disclosure for employers participating in multiemployer plans. The revised FASB proposal eliminates the withdrawal liability disclosure as well as a number of other items that would be extremely burdensome for both employers and the plans to which they contribute.
A summary of its May 31, 2011 Board meeting and the tentative revised proposal is posted on the FASB website.
The FASB’s action is an encouraging sign. However, some members of the Board are still advocating for additional disclosures. Horizon Actuarial Services is working closely with a coalition of employers, financial statement users, and plan trustees to bolster support among the FASB Board members for the more limited disclosure tentatively agreed to at the May 31 meeting. Horizon participated in a conference call with FASB staff earlier this week to address the coalition’s remaining concerns about additional multiemployer plan disclosure. The coalition is also requesting one more meeting with FASB Board members before the FASB takes final action, which could happen as soon as the end of June.
Please contact your Horizon Actuarial consultant for additional information or if you have any questions.
At its May 31, 2011 Board meeting, the FASB reached a tentative decision regarding a significantly reduced financial disclosure for employers participating in multiemployer plans. The revised FASB proposal eliminates the withdrawal liability disclosure as well as a number of other items that would be extremely burdensome for both employers and the plans to which they contribute.
A summary of its May 31, 2011 Board meeting and the tentative revised proposal is posted on the FASB website.
The FASB’s action is an encouraging sign. However, some members of the Board are still advocating for additional disclosures. Horizon Actuarial Services is working closely with a coalition of employers, financial statement users, and plan trustees to bolster support among the FASB Board members for the more limited disclosure tentatively agreed to at the May 31 meeting. Horizon participated in a conference call with FASB staff earlier this week to address the coalition’s remaining concerns about additional multiemployer plan disclosure. The coalition is also requesting one more meeting with FASB Board members before the FASB takes final action, which could happen as soon as the end of June.
Please contact your Horizon Actuarial consultant for additional information or if you have any questions.
RSS Feed