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CCH® PENSION — 09/16/09

FASB excludes pensions from its definition of financial instruments

The Financial Accounting Standards Board (FASB) decided at its August 19, 2009, meeting to exclude pension benefits and other postretirement benefit obligations from changes the FASB is considering to its definition of financial instruments.

Specifically, the FASB has excluded “employers’ and plans’ obligations for pension benefits; other postretirement benefits, including health care and life insurance benefits, postemployment benefits, and employee stock option and stock purchase plans; and other forms of deferred compensation arrangements as defined in the following:

“(1) U.S. GAPP on compensation (originally issued as FASB Statement #43, Accounting for Compensated Absences, and APB Opinion No. 12, Omnibus Opinion — 1967),
“(2) Topic 712 on nonretirement postemployment benefits (originally issued as FASB Statement # 112, Employees’ Accounting for Postemployment Benefits),
“(3) Topic 715 on compensation for retirement benefits (originally issued as FASB Statement #87, Employers’ Accounting for Pensions, and Statement #106, Employers’ Accounting for Postretirement Benefits Other Than Pensions),
“(4) Topic 960 on plan accounting for defined benefit pension plans (originally issued as FASB Statement # 35, Accounting and Reporting by Defined Benefit Pension Plans), and
“(5) U.S. GAAP on shared-based payment (originally issued as FASB Statement #123 (revised 2004), Share-Based Payment).”

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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