MITA reported in an earlier Labor Bulletin that in September of 2010, the (FASB) issued an Exposure Draft proposing Financial Accounting Standards Board new financial disclosure requirements for employers who contribute to multiemployer pension and health plans. The original FASB proposal required the disclosure of a significant amount of information — including an estimate of withdrawal liability — for employers participating in multiemployer pension plans.
At its May 31, 2011 Board meeting, the FASB reached a tentative decision regarding a significantly reduced financial disclosure for employers participating in multiemployer plans. The revised FASB proposal eliminates the withdrawal liability disclosure as well as a number of other items that would be extremely burdensome for both employers and the plans to which they contribute.
A summary of its May 31, 2011 Board meeting and the tentative revised proposal is posted here.
The FASB’s action is an encouraging sign. However, some members of the Board are still advocating for additional disclosures. MITA is working closely with a coalition of employers, financial statement users, and plan trustees to bolster support among the FASB Board members for the more limited disclosure tentatively agreed to at the May 31 meeting. The coalition is also requesting one more meeting with FASB Board members before the FASB takes final action, which could happen as soon as the end of June.
MITA feels that the decisions made at the May 31, 2011 meeting is a significant improvement to the September 2010 draft, and will greatly reduce burdens on employers and plans.
If you have any questions regarding the issues discussed in this bulletin, please contact Mike Nystrom at mikenystrom@mi-ita.com, or call him at the MITA office (517) 347-8336.
