Curtailment

[Mister Met]

Hard Plan Freeze for DB

no Unrecognized prior service cost or transition asset/obligation

Unrecognized net loss= $4 million

Decrease in PBO due to curtailment = $3 million

do we reduce the $4 million loss by $3 million, resulting in $1 million unrecognized loss after curtailment?

Thanks

[quinnfield]

From Para. 40 of SFAS #88:

40. The Board concluded that a curtailment gain or loss as defined in paragraph 13 (which

does not include recognition of prior service cost) should first be offset to the extent possible

against the plan's previously existing unrecognized net loss or gain. Any remainder of the

curtailment gain or loss cannot, at least in an overall sense, be a reversal of unrecognized

amounts, and therefore, recognition of that remainder is appropriate.