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FASB Makes Decisions on Required Disclosures for Multiemployer Plans

Published on: 02 Jun 2011

At its May 31 board meeting, the FASB continued deliberations of its September 2010 exposure draft (ED), Disclosure About an Employer’s Participation in a Multiemployer Plan. The Board focused on the quantitative disclosures an employer should make related to its participation in a multiemployer plan.

The ED required employers to disclose the withdrawal liability as a proxy for an employer’s share of the unfunded pension liability. Many respondents to the ED disagreed with this requirement because of its potential for confusion and challenged the appropriateness of its use as a proxy as well as the cost. The Board recognized these concerns and tentatively decided to not require the disclosure of the withdrawal liability.

The Board also tentatively decided to require several disclosures for each multiemployer plan when contributions are material, including the following:

  • Plan identification information.
  • Certified zone status, as required by the Pension Protection Act of 2006.
  • Contributions to the plan for each annual period an income statement is presented.
  • Surcharges paid, if applicable.
  • Expiration date of the plan’s associated collective bargaining agreement.

The FASB staff was asked to perform additional outreach on these decisions and to discuss the results at future meetings.

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