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As the new method produces a more precise measurement of certain components of pension cost, the U.S. Securities and Exchange Commission staff said recently it would not object to the application of the new method in certain circumstances.
Any change could be important to a private employer's bottom line and a major issue for senior-level financial executives tasked with managing pension liabilities. The average cost in private industry for retirement and savings benefits is 4 percent of total compensation and rising, according to the most recent numbers from the U.S. Department of Labor. In addition, U.S. pension expenses increased by $4.8 billion last year.
Do you want to know more about this new approach to measurement? Would you like to discuss this change and the effect it will have on your financial statements? You can learn more and join in a discussion with other FEI members on this new pension accounting method at FEIconnect by clicking on the banner below.
