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FASB Changes to Market-Based Cash Balance Plan Accounting
October Three Consulting
[Guidance Overview] Jan. 29, 2026 "Projecting the growth of benefits based on one rate and discounting them based on another rate creates a wild fluctuation in the liability for those benefits ... The FASB Emerging Issues Task Force (EITF) recommended that benefits that meet the strict definition of a Market-Based Cash Balance plan should be valued by setting the discount rate to be equal to the assumed interest crediting rate. This simple-sounding fix effectively eliminates the issue and allows benefits to be valued at the account balance with appropriate adjustments for specific, and usually minor, benefit provisions[.]" MORE >> |
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