Alternative measures of the benefit obligation, including vested benefit obligations, accumulated benefit obligations
for pension plans with assets in excess of the accumulated benefit obligation
, and various portions of postretirement benefit obligations for retirees, other active participants, and other fully eligible participants.
The effect of the additional increase of the discount rate by 0.25 percent on the projected and accumulated benefit obligations
would be to decrease or even eliminate the underfunded portion of Mottins' retirement plans.
DB plan, the funding ratio on accumulated benefit obligations
increased from 95 percent at the start of 2004 to 99 percent at the beginning of 2005, while funding of projected benefit obligations rose from 88 percent to 91 percent.
Disclosures about pension plans with assets in excess of the accumulated benefit obligation generally may be aggregated with disclosures about pension plans with accumulated benefit obligations in excess of assets.
The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets.
Until this Statement is fully adopted, financial statements that exclude foreign plans from (a) the actual allocation of assets, (b) the description of investment strategies, (c) the basis used to determine the expected long-term rate-of-return-on-assets assumption, of (d) the amount of accumulated benefit obligation should include, separately for domestic plans, the total fair value of plan assets as of the measurement date(s) used for the latest statement of financial position presented and the overall expected long-term rate of return on assets for the latest period for which a statement of income is presented.
The FASB in this standard eliminates the following previous disclosure requirements pertaining to pensions and other post-retirement benefits: (1) accumulated pension benefit obligations [ABO] only for plans having assets in excess of the ABO, but not for plans in which the ABO exceeds the plan assets; (2) vested benefit obligations; and (3) an analysis of other post-retirement accumulated benefit obligations
for retirees, other fully eligible individuals, and active, but not fully eligible, participants.
SFAS 132 requires less-detailed information about plans that have accumulated benefit obligations that exceed assets.
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2003, were as follows:
The percentage of companies whose defined benefit pension plans have sufficent assets to cover their accumulated benefit obligations
has been falling for the past few years, according to Buck Consultants, Inc., a New York City employee benefit, actuarial and compensation consulting firm.
Corporations that have pension plans that are not under-funded with respect to their accumulated benefit obligations do not have MPL, and must be sure to eliminate any existing MPL remaining from prior periods.
The determination of the existence of MPL depends on whether the accumulated benefit obligation of the pension plan exceeds the fair value of the pension plan assets.