Amendment of Statements 87 and 35
Last Updated: December 21, 2005 (Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
The Board intends to address the issues in this project as part of its broader project on postretirement benefits, including pensions.
The Emerging Issues Task Force (EITF) discussed EITF Issue No. 03-4, "Determining the Classification and Benefit Attribution Method for a ‘Cash Balance’ Pension Plan," at the March 20, 2003 and May 15, 2003 EITF meetings. In the course of preparing the discussion materials for Task Force consideration of Issue 03-4, the staff became aware of pension plans that provide annual interest credits that are variable, based on a market rate. The staff decided to narrow the scope of Issue 03-4 to address only plans with fixed interest crediting rates because plans with variable interest crediting rates present unique measurement issues that were considered to be beyond the scope of the specific EITF issue. In subsequent research and discussions, the staff learned of the pervasiveness of plans with variable interest crediting rates, and the wide variety of interest crediting formulas, none of which are addressed specifically in Statement 87. Therefore, the staff recommended that the Board add an interpretive project to its agenda to address the measurement of costs and obligations under those types of arrangements. At the September 24, 2003 meeting, the Board decided to add that project to its application and implementation agenda.
The original objective of this project was to provide measurement guidance regarding cash balance pension plans, which are not specifically addressed in FASB Statement No. 87, Employers' Accounting for Pensions. At its October 13, 2004 Board meeting, the Board expanded the scope of the project and directed the staff to consider the appropriate pension obligation measurement model for all defined benefit plans that provide plan participants with a lump sum benefit feature at the date of separation from employment.
On November 10, 2005, the Board decided to address the issues in this project as part of the broader pensions project that was added to the agenda on that date.
Board Meeting/Public Meeting Dates
The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement or Interpretation.
The following are links to the minutes for each meeting. Minutes for meetings generally are posted within two weeks following the meeting.
|May 11, 2005||Board Meeting—Project direction|
|October 13, 2004||Board Meeting—Project direction|
|May 12, 2004||Board Meeting—Scope, effective date and transition, and implementation issues|
|March 31, 2004||Board Meeting—Measurement issues, disclosures, effective date and transition|
|March 3, 2004||Board Meeting—Measuring a cash balance pension plan obligation|
|February 11, 2004||Board Meeting—Discussion of a revised proposed working definition of cash balance pension plan|
|January 21, 2004||Board Meeting—Discussion of a cash balance pension plan characteristics and a proposed working definition of a cash balance pension plan|
|September 24, 2003||Board Meeting—Decision to add project to Board agenda|