Headlines about "Accounting for benefits, incl. FASB, GASB"
Gathered from the web by the editors at BenefitsLink.com.
Accounting Rules Help Pension Plans, But Losses Continue, According to Mercer
Excerpt: "The upheaval on Wall Street that began a few weeks ago is the latest chapter in the financial market turmoil that began in the middle of last year. Since the end of 2007, the funded status of pension plans sponsored by large US companies has fallen by almost $100 billion. However, during the third quarter, despite the falls in global equity markets, the financial position improved, due to the increase in 'high-quality' corporate bond yields, according to analysis conducted by Mercer." (Business Wire via MarketWatch)
FASB Fine-Tunes New Disclosures About Pension and Retiree Medical Plan Assets
Excerpt: "A refined FAS 132(R), Employers' Disclosures about Pensions and Other Postretirement Benefits, should describe the objectives of employers' disclosures about their pension, retiree medical and other postretirement benefit plan assets and investment risks, FASB decided at its Sept. 24 meeting." (Mercer LLC)
Public Plan Accounting Rules Can Mask Underfunding Woes
Excerpt: "Within the next 15 years, state pension plans will be have a two-third probability of being underfunded to the tune of almost $1.5 trillion in 2005 dollars, two academic researchers assert in a new study." (PLANSPONSOR.com; free registration required)
Employers Balk at Proposed International Pension Accounting Rules, Survey Finds
Excerpt: "[A] recent survey by Watson Wyatt Worldwide revealed that many companies are not familiar with the IASB's proposed changes to IAS19, its standard for accounting for employee benefits, and the majority of those that are do not support its proposal. However, employers do believe that changes to current pension accounting standards are necessary." (Wolters Kluwer)
[Guidance Overview] Update on Automatic Changes in Accounting for Employee Bonuses under Revenue Procedure 2008-52
Excerpt: "IRS Revenue Procedure 2008-52 created a new automatic accounting method change for certain employee bonuses effective for change requests filed on or after August 18, 2008 for a year of change ending on or after December 31, 2007. At the time, it was not clear whether the IRS would allow automatic changes under the revenue procedure when an employer had been taking deductions under an impermissible accounting method. IRS officials have now indicated that they will allow automatic changes under Revenue Procedure 2008-52 in certain common situations." (Deloitte via BenefitsLink.com)
Accounting for Employee Benefits: Reactions to the IASB's Preliminary Views Paper from Around the World
Excerpt: "Watson Wyatt's survey on the IASB's March 2008 discussion paper, 'Preliminary Views on Amendments to IAS19 Employee Benefits,' examines employers' reactions to the proposal, which would make significant changes to the way retirement benefits are accounted for in employer financial statements. While, if implemented, the changes would not reduce most employers' commitment to their defined benefit (DB) pension and retiree medical plans, a sizeable minority say the proposal would weaken their company's commitment to its DB plans." (Watson Wyatt Worldwide; free registration required to download paper)
SEC Proposes U.S. Companies Shift to Global Financial Reporting Rules
Excerpt: "The Securities and Exchange Commission (SEC) is moving forward with a proposal to phase in a requirement for U.S. registrants to move from U.S. generally accepted accounting principles (GAAP) to International Financial Reporting Standards (IFRS) over the next six to eight years. The SEC approved a proposed road map to adopting IFRS, which is contingent on convergence of U.S. GAAP and IFRS in certain key areas, by a unanimous vote on August 27. If adopted as proposed, the changeover would have a far-reaching impact on companies' financial statements, including the way employers account for employee benefits and, to a lesser extent, stock-based compensation." (Towers Perrin)
[Guidance Overview] Revenue Procedure May Provide New Automatic Change in Accounting Method for Employee Bonuses
Excerpt: "Revenue Procedure 2008-52 creates a new automatic accounting method change for employee bonuses, which may allow employers that have been using an impermissible accounting method to switch to a permissible method in some situations. This is effective for change requests filed on or after August 18, 2008 for a year of change ending on or after December 31, 2007. The revenue procedure and Announcement 2008-84 provide some transition rules for requests previously filed and for some not yet filed." (Deloitte via BenefitsLink.com)
[Guidance Overview] New Standards Cast Light on Governments' Post-Employment Liabilities
Excerpt: "Two GASB statements are sending ripples through American governmental finance. The statements establish clear, stringent standards for measuring and disclosing non-pension post-employment benefits provided -- employee benefits that are largely related to health care. Statement no. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, and its companion Statement no. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, demand budgetary transparency of state and local governments." (American Institute of Certified Public Accountants)
International Accounting Rules Could Affect Way American Companies Compensate Employees
Excerpt: "Companies that adopt international financial reporting standards will need to reexamine their compensation and employee benefit plans. The switchover from U.S. generally accepted accounting principles to IFRS will not only translate into tweaks regarding how companies account for such programs -- but could also change plan design because of the way international rules affect corporate financial statements, according to Deloitte." (CFO.com)
SEC Proposes Roadmap for U.S. Companies to Adopt International Accounting Standards (PDF)
Excerpt: "Significant differences in U.S. GAAP and IFRS accounting now exist, including requirements for employee benefit plans and stock-based compensation programs. The FASB and IASB have worked together over the last several years toward convergence of their accounting standards. In some cases, the Boards assigned major projects, such as changes to the reporting of financial performance, to teams that include members of both staffs. In other situations, the Boards have decided to take on projects such as accounting for employee benefit plans individually, but have closely monitored each other's progress and have, at times, focused on different aspects of the subject matter." (Buck Consultants)
Pension Accounting Change Needed, But Not As Suggested
Excerpt: "Employers believe changes to current pension accounting standards are necessary, but most are not in favor of the changes proposed in the International Accounting Standards Board's (IASB's) preliminary views paper, according to a recent survey by Watson Wyatt Worldwide." (PLANSPONSOR.com; free registration required)
Pension Accounting Change Needed, But Not As Suggested Say Employers
Excerpt: "Employers believe changes to current pension accounting standards are necessary, but most are not in favor of the changes proposed in the International Accounting Standards Board's (IASB's) preliminary views paper, according to a recent survey by Watson Wyatt Worldwide." (PLANSPONSOR.com; free registration required)
SEC Proposes to Adopt International Accounting Standards
Excerpt: "On Aug. 27, the Securities and Exchange Commission (SEC) voted unanimously to propose a road map for shifting U.S. companies from U.S. Generally Accepted Accounting Principles (U.S. GAAP) to International Financial Reporting Standards (IFRS). The move to a global accounting language is intended to improve the comparability and transparency of financial reporting worldwide. It will also have important implications for U.S. employers in how they account for employee benefit and stock plans." (Watson Wyatt Worldwide)
[Official Guidance] Text of OMB Advance Notice of Proposed Regs on Harmonization of PPA Funding Rules with Federal Cost Accounting Standards for Contractor Reimbursement
Excerpt: "SUMMARY: The Office of Federal Procurement Policy, Cost Accounting Standards Board, invites public comments concerning an Advance Notice of Proposed Rulemaking on the harmonization of Cost Accounting Standards 412 and 413 with the Pension Protection Act of 2006. DATES: Comments must be in writing and must be received by November 3, 2008." (U.S. Office of Federal Procurement Policy, Office of Management and Budget)
[Guidance Overview] Solving Small Employers' GASB 45 Puzzle
Excerpt: "GASB 45 has already placed requirements on large government entities. Now smaller public employers face their own deadlines. GASB 45 poses a particular challenge to these entities because of the cost of valuing the liability and the potential size of the liability relative to their overall budget. This article outlines a sensible approach for these smaller public employers." (Milliman)
Idaho Public Employee Retiree Health Benefits - Changes To Come with GASB 45
Excerpt: "For most retirees the financial changes may not be so dramatic, but it could be for those with expensive medications. For everyone, the limitations and changes in their plan may be disruptive, because they'll be going from a premium state plan to Medicare. The legislation is coming up this session. If it passes, as is, it will take effect January 2010." (KIDK.com)
Governments Mostly Undecided on OPEB Funding Strategy
Excerpt: "Strategies to deal with new standards imposed by the Governmental Accounting Standards Board (GASB) have yet to be widely decided by governments, despite a compliance deadline of the end of 2009. A study conducted by the nonprofit Cobalt Community Research found 74% of local governments that provide retiree health care are aware of the GASB 45 requirements, and 47% report that they have already calculated their retiree health care liability or the calculation is in process. GASB 45 requires states to identify the costs for other post employment benefits (OPEB) in their FY 2008 financial reports." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Assessing the Implications for Asian Plans of IASB's Preliminary Views on Changes to IAS 19 (PDF)
Excerpt: "This paper describes some of the significant implications of the [International Accounting Standards Board's] thinking for plans typically found in major Asian markets, focusing on two of the themes highlighted in the Discussion Paper -- the definition of contribution-based promises, and the measurement approaches outlined for these promises." (Towers Perrin)
Managing Pension Funding Surpluses (PDF)
12 pages. Excerpt: "Higher funding targets under the U.S. Pension Protection Act of 2006 (PPA) and the reduction or elimination of future pension accruals are increasing the likelihood of signifi cant surplus in defi ned benefi t pension plans. Now is the time to develop a strategy for effectively managing emerging pension surpluses." (Towers Perrin)
Investment Trusts for Other Post-Employment Benefits (PDF)
3 pages. Excerpt: "GASB 45 forces public employers to calculate a liability for their other post-employment benefits (OPEB). The cost of this liability can be staggering. What's a public employer to do? A GASB trust offers one option for prefunding these benefits." (Milliman)
Labor Department Wants Independent Alternatives Valuation - Could Result in Increase in Expense and Work for Plan Fiduciaries
Excerpt: "The Department of Labor's regional office in Boston is investigating how corporate pension plan fiduciaries value their alternative investments. . . . Pension plans often rely on the financial statements of general partners to report the value of those investments in their Form 5500 annual filings with the DOL. But in at least one letter to an unidentified pension plan, James Benages, director of the DOL's Boston regional office, contends that plan fiduciaries need to have a process in place to independently evaluate the alternative assets." (Pensions & Investments)
FAS 132: for Reporting on the Quality of Pension Assets and Certain Other Things
Excerpt: "As proposed, the FAS 132 [FASB staff position] would, basically, apply the FAS 157 requirements to companies reporting on DB plans. It would require that sponsors provide information about what kinds of assets are held in the DB plan -- stocks, hedge funds, real estate, etc. Critically, the company would have to provide information about the riskiness of the DB plan's portfolio." (PLANSPONSOR.com; free registration required)
Financing Retiree Health Care: Assessing GASB 45 Estimates of Liabilities (PDF)
9 pages. Excerpt: "If a government uses pay-as-you-go financing for its retiree medical plan, the actuarial accrued liabilities (AAL) are equal to the unfunded actuarially accrued liabilities (UAAL). Using these data, the actuary also determines the annual required contribution (ARC), which is equal to current expenditures plus the additional contribution needed to completely fund the UAAL over a 30-year period. This Issue Brief discusses these assumptions and their importance in determining financial challenges facing state and local governments." (Center for State and Local Government Excellence)
[Guidance Overview] GASB 45 Standard Creates Accounting Quandary for Health Benefits in Retirement (PDF)
6 pages. Excerpt: "Differing opinions on discount rate selection under a new government accounting standard could lead local governments to unintentionally mislead creditors about their financial obligations for retiree health benefits." (American Academy of Actuaries)
GASB Offers Pension Calculation Method
Excerpt: "GASB [yesterday] proposed a method to calculate any amortization adjustment to the annual required contribution to pension and other post-employment benefit plans to avoid overstatement of annual pension cost and to maintain consistency between the actuarial and accounting measurements used for financial reporting." (Pensions & Investments)
The Impact of the Credit Crisis on Pension Liabilities in Transactions
Excerpt: "Note that we have focused in this article on the key financial element of valuations: the discount rate. This is not to negate the importance of other issues such as mortality and inflation assumptions, but these items have not been influenced by the recent turmoil in the credit markets." (Mercer LLC)
[Official Guidance] Proposed GASB Technical Bulletin: Determining the Annual Required Contribution Adjustment for Postemployment Benefits (PDF)
8 pages. Excerpt: "This Technical Bulletin clarifies the requirements of Statements 27 and 45 for calculating the annual required contribution (ARC) adjustment. Specifically, this Technical Bulletin applies to situations in which the ARC includes a known amount related to the amortization of past employer contribution deficiencies or excess contributions to a pension or other postemployment benefit (OPEB) plan." (Governmental Accounting Standards Board)
GASB Issues Proposal on Required Contributions for OPEBs
Excerpt: "The Governmental Accounting Standards Board (GASB) has issued for comment a proposed Technical Bulletin, 'Determining the Annual Required Contribution for Postemployment Benefits.' According to a GASB announcement, the document will clarify that the use of actual known amounts for purposes of calculating the annual required contribution (ARC) adjustment relating to pensions and other postemployment benefits (OPEB) is consistent with the intent of existing standards." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Assessing the Implications for U.S. Plans of the IASB's Preliminary Views on Changes to IAS 19 (PDF)
4 pages. Excerpt: "Measurement of the obligation and annual cost for the majority (perhaps two-thirds or more) of U.S. pension and many retiree welfare plans would change under the [International Accounting Standards Board's] preliminary views." (Towers Perrin)
The Crisis in State and Local Government Retiree Health Benefit Plans: Myths and Realities (PDF)
12 pages. Excerpt: "This Issue Brief explores some of the most importantperceptions associated with retiree health plans and the new GASB accounting standards and assesses whether these beliefs are myths or realities." (Center for State and Local Government Excellence)
Next Round of Pension Accounting Rules Will Include More 'Granular' Information About Assets
Excerpt: "The Financial Accounting Standards Board met on Wednesday to discuss its project on post-retirement benefit obligations, focusing on how to update disclosures about plan assets. The meeting was part of FASB's effort to rework guidance on FAS 132(R), Employers' Disclosures About Pensions and Other Postretirement Benefits, to improve transparency about the types of assets held in plans." (CFO.com)
[Guidance Overview] Financial Reporting of Pension and Postretirement Benefit Plan Assets
Excerpt: "In March, the Financial Accounting Standards Board (FASB) proposed a FASB Staff Position that would amend FASB Statement No. 132(R), Employers' Disclosures about Pensions and Other Postretirement Benefits. In this article we review the proposal and discuss the issue of alternative asset valuation generally, both with respect to DB and DC plans." (JPMorgan Chase & Co.)
Accounting Quandary for Health Benefits in Retirement (PDF)
6 pages. Excerpt: "A common reaction to the new accounting standard increased contributions to a pension-like trust, which will be recorded as an expense. There are two predominant views on how best to select the discount rate for measuring OPEB liabilities during the phase-in period. But each has serious deficiencies." (Mark Shemtob via Contingencies)
Projecting Health Care Cost Trends: Observations on the SOA's New Model
Excerpt: "Professor Thomas E. Getzen, a health economist at Temple University, developed the Long Term Healthcare Cost Trends Resource Model in consultation with the Society of Actuaries (SOA).2 The project was undertaken to give auditors and others a comprehensive and accepted framework for evaluating long-term trend assumptions and gauging their reasonableness relative to other economic variables." (Watson Wyatt Worldwide)
GASB Begins Project Examining Possible Changes to Benefit Accounting and Reporting Standards (PDF)
Page 2 of 8 pages. Excerpt: "On April 24, 2008, the Governmental Accounting Standards Board (GASB) revised its 2008 Technical Plan, adding a new 'Postemployment Benefit Accounting and Financial Reporting' project. The overall goal of the project is to consider improvements to accounting and financial reporting standards for state and local government pension and other postemployment benefits (OPEB) . . . ." (Gabriel Roeder Smith & Company)
Equity Valuation Effects of the Pension Protection Act of 2006
Excerpt: "We examine pension firms' abnormal returns surrounding key dates in the legislative process leading to the adoption of the PPA 2006. We also estimate a multivariate model that isolates the equity valuation effects by the key provisions of the legislation. Third, we amend the multivariate model to assess whether there are differential valuation effects for firms in the different at risk categories defined by the PPA 2006." (Social Science Research Network)
Study Finds UK Pension Accounting Does Not Capture All Risks
Excerpt: "Giving employers 20 years instead of 10 to bring their pension plans up to full funded status would allow U.K. companies to cut their annual pension contribution rate by 94%, a new study found." (PLANSPONSOR.com; free registration required)
The Intersection of Pension Accounting Reform and Investment Risks
16 pages. Excerpt: "In this Perspective, we examine the potential changes to pension and postretirement benefit accounting and how they fit within the context of the broader accounting reform goals that the FASB and the IASB are pursuing – in particular, the movement toward 'market value' accounting and a new face of financial statements." (Mercer LLC)
[Opinion] CIEBA Letter on Proposed FASB Staff Position to Amend FASB Statement 132 (revised in 2003), Employers' Disclosures about Pensions and Other Postretirement Benefits (PDF)
5 pages. Excerpt: "As the chief investment officers for 110 major private-sector retirement plans, CIEBA members recognize the desirability of increased transparency and comparability in the financial statements of public companies. However, we posit that the proposals contained in this FSB will not lead to a meaningful increase in transparency and may reduce comparability." (Committee on Investment of Employee Benefit Assets)
[Opinion] CIEBA Letter on Proposed FASB Staff Position to Amend FASB Statement 132 (revised in 2003), Employers' Disclosures about Pensions and Other Postretirement Benefits (PDF)
5 pages. Excerpt: "As the chief investment officers for 110 major private-sector retirement plans, CIEBA members recognize the desirability of increased transparency and comparability in the financial statements of public companies. However, we posit that the proposals contained in this FSB will not lead to a meaningful increase in transparency and may reduce comparability." (Committee on Investment of Employee Benefit Assets)
[Guidance Overview] Accounting for Financing Assets of Nonqualified Benefit Plans (PDF)
Pages 6-7 of 8 pages. Excerpt: "When financed, there are typically two methods: mutual funds and Corporate Owned Life Insurance ('COLI'). Financing nonqualified benefit liabilities enables the company to establish an asset that offsets the liability, providing a certain level of comfort to plan participants." (The Cochlan Group)
Public Funds Campaign Against Latest Efforts to Value Pension Liabilities at Market Rates
Excerpt: "A move to market valuation could lead to public plans using a much lower discount rate, such as 4% to 5%, compared with the current 7% to 8.5%, and result in reporting higher liabilities . . . ." (Pensions & Investments)
Retirement Groups Urge Change in Method of Estimating Revenue Effects of Legislative Proposals
Excerpt: "A group consisting of ten retirement advocacy organizations . . . has issued a research report which advocates the use of present-value accounting instead of cash-flow accounting when estimating the revenue cost of proposed legislative changes affecting retirement policy." (Wolters Kluwer)
[Guidance Overview] Understanding the Option Dating Controversies: Practical Problems and Issues
Excerpt: "The prior installment of this article series discussed the myriad of legal problems and issues that option backdating participants face. If those were not enough, option manipulation activity raises a host of practical and business-related issues. This installment of the series highlights some of the more common practical issues, although it is by no means an exclusive list of problems that such companies are facing or will face in the future." (Employee Benefit Plan Review via Blank Rome LLP)
[Guidance Overview] Beware of PBGC 'Downsizing Liability'!
Excerpt: "A downsizing employer with a PBGC-covered pension plan may have to grapple with a PBGC demand to protect that plan in the event it terminates in a distress or involuntary termination within the next five years. The protection may take the form of a bond, an escrow, or -- more likely -- a negotiated alternative, such as an additional contribution to the plan. [This article was republished with permission from the Journal of Pension Benefits.]" (Keightley & Ashner LLP)
[Opinion] Joint Letter to Members of Congress Regarding Strength and Viability of Public Retirement Systems (PDF)
4 pages. Excerpt: "On behalf of the 20 national organizations listed . . . representing State and local governments and officials, public employee unions, public retirement systems, and more than 20 million working and retired state and local government workers and their beneficiaries -- we are writing to set the record straight with regard to the long-term viability and strength of State and local government employee retirement systems." (National Association of State Retirement Administrators)
Coalition Tells Congress to 'Get it Right' About Public Pension Funding
Excerpt: "A coalition of government officials, retirement systems, and unions has sent a letter to Congress saying the use of inappropriate and incomplete information by some organizations distorts the truth regarding public pension finance." (PLANSPONSOR.com; free registration required)
GASB Considering Improvements to Accounting Standards for Pension and Other Post Employment Benefits
Excerpt: "As stated by GASB, the objectives are to improve: accountability – or the transparency of financial reporting – in regard to the financial effects of employers' commitments (i.e., improve the information provided to help report users assess the degree to which interperiod equity has been achieved), and usefulness of information for decisions relevant to the various users of the external financial reports of governmental employers and pension or OPEB plans." (Deloitte via BenefitsLink.com)
ERISA Plan Audits Scoring a Failing Grade
Excerpt: "As part of its stated goal of providing benefits security, ERISA requires that an independent qualified public accountant (IQPA) perform an annual plan audit and that the accountant's report be included as part of the plan's annual report filed with the Department of Labor. Recent assessments have suggested deficiencies in the accomplishment of that objective." (Health Plan Law blog by Attorney Roy F. Harmon III)
[Guidance Overview] FASB Proposes Additional Asset Disclosures for Pension Plans (PDF)
Excerpt: "The Financial Accounting Standards Board (FASB) has issued a proposed staff position requiring sponsors of defined benefit pension plans and other postretirement benefit plans (OPEBs) to disclose additional information about the plan's invested assets. The additional disclosures would be required for fiscal years ending after December 15, 2008, with prospective application only." (Buck Consultants)
Why Liability-Driven Investing? A Strategy for Balancing Asset and Liability Risk for Defined Benefit Pension Plans
Excerpt: "While the primary reason for creating a defined benefit (DB) pension plan is to help employees prepare for retirement, financial stewardship issues have recently eroded their importance as part of the employer's total rewards package to attract and retain talent. Study after study of DB plans has shown that the volatility -- rather than the absolute level -- of costs has spurred employers to act." (Sibson Consulting)
Real Victim of Pension Underfunding? Future Earnings, Says UBS
Excerpt: "While almost half of the companies in the S&P 500 have underfunded pension plans, the shortfalls at Ford and Goodyear pose more of a threat to future profitability of those companies than is the case with any of the others in the index, according to a new report from UBS analysts." (Workforce.com)
[Guidance Overview] Postemployment Benefit Accounting and Financial Reporting for Government Plan Sponsors
Excerpt: "In this project, the Board will consider the possibility of improvements to the existing standards of accounting and financial reporting for postemployment benefits -- including pension benefits and other postemployment benefits (OPEB) -- by state and local governmental employers and by the trustees, administrators, or sponsors of pension or OPEB plans. One objective of this project is to improve accountability, or the transparency of financial reporting, in regard to the financial effects of employers' commitments and actions related to pension benefits and OPEB." (Governmental Accounting Standards Board)
[Guidance Overview] Summary of FASB Statement 123R Share-Based Payment (Revised 05/08/08) (PDF)
Excerpt: "Financial Accounting Standards Board (FASB) Statement No. 123 (revised 2004), Shared-Based Payment (Statement 123R) repeals the longstanding 'intrinsic value' method of accounting for equity compensation prescribed by APB Opinion No. 25 (Opinion 25), and replaces original Statement 123 with a mandate that generally all equity awards granted to employees be accounted for at 'fair value.'" (Frederic W. Cook & Co., Inc.)
[Opinion] Financial Executives Institute Comments on FASB Proposal On Pension, Post-Retirement Benefit Disclosures
Excerpt: "On May 6, 2008, a joint comment letter was sent by FEI's Committee on Benefits Finance ('CBF') and Committee on Corporate Reporting ('CCR') to the Financial Accounting Standards Board (FASB), commenting on Proposed FASB Staff Position (FSP) No. 132(R)-a, Employers' Disclosures about Pensions and Other Postretirement Benefits ('the FSP'). The letter . . . stated support for FASB's objective to improve disclosures for assets held in postretirement benefit plans." (Financial Executives Institute)
Growing Deficits Threaten Public Pensions
Excerpt: "The funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall that could soon run into trillions of dollars. But the accounting techniques used by state and local governments to balance their pension books disguise the extent of the crisis . . . ." (Washington Post; free registration required)
[Opinion] Letter to FASB on Proposed Staff Position on Disclosure of Retirement and Other Post-Retirement Benefits (PDF)
5 pages. Excerpt: "As the chief investment officers for 110 major private-sector retirement plans, CIEBA members recognize the desirability of increased transparency and comparability in the financial statements of public companies. However, we posit that the proposals contained in this FSB will not lead to a meaningful increase in transparency and may reduce comparability." (Committee on Investment of Employee Benefit Plan Assets)
EBSA Studying 403(b) Orphan Contract Problem
Excerpt: "A top Department of Labor (DoL) benefits regulator on Thursday revealed that the agency is studying ways to help 403(b) plan sponsors better deal with the difficult problem of getting an exact accounting of their orphan contracts." (PLANSPONSOR.com; free registration required)
Plan Sponsors Unprepared for FAS 157, Survey Finds
Excerpt: "Defined contribution plan executives are unprepared for upcoming accounting changes, leaving themselves open to IRS scrutiny, according to a new survey. The 2008 Plan Sponsor Retirement survey conducted by Grant Thornton found that plan executives are not paying close enough attention to their plans' governance and auditing practices, both of which will be affected by the implementation of Financial Accounting Standard 157, which goes into effect in 2009. (FAS 157 does not just affect DC plans, but includes other employee benefit plans.)" (Financial Week; free registration required)
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