NU Online News Service, Sept. 26, 2003, 2:50 p.m. EDT – The Financial Accounting Standards Board in Norwalk, Conn., says it will study how employers account for cash-balance pension plans and may ultimately change its rules governing such plans.
FASB says the project will look at ways to measure employers’ obligations under cash-balance pension plans. It announced the project on its Web site Thursday.
“Current accounting guidance does not specifically address the types of benefit arrangements that exist in many cash-balance pension plans,” FASB explains.
The main goals of the project would be to define what a cash-balance plan is and to provide an accounting method that employers can use consistently to measure their pension obligations to employees.