According to FASB's press release, the new standard is expected to be published in September, 2011, and will have the following effective date:
- For public entities, the enhanced disclosures will be required in fiscal years ending after Dec.15, 2011.
- For nonpublic entities, the enhanced disclosures will be required in fiscal years ending after Dec. 15, 2012.”
Describing the new standard, FASB Chairman Leslie Seidman stated,
“Historically, very limited information about these plans has been disclosed, even though they may represent significant potential obligations for many large, unionized industries such as trucking, supermarket chains, and construction firms. The enhanced disclosures will ensure that shareholders in companies that participate in these plans, workers who depend on them for their retirement benefits, as well as lenders and others, will have more information regarding the employers’ pension commitments and the financial health of the plans.”
Change made to proposal in response to constituent comments
As noted in FASB's press release:
Prior to today’s action by the FASB, employers were required to disclose only their total contributions to all multiemployer plans in which they participate. Today’s decisions conclude comprehensive deliberations about the disclosures an employer should provide. The FASB issued initial proposals for revising disclosures for public comment in September 2010. As part of its redeliberations, the FASB decided to delete a proposal to require employers to disclose their withdrawal liability to all plans in which they participate, or provide a “point-in-time” estimate of its obligations with respect to the underfunded status of individual plans.
Further highlights of the new requirements can be found in FASB's press release. See also FASB's project page.
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A good news because fasb approves multiemployer pension plans.
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