FASB Asks Companies to Comment on Proposed Effective Dates for Postretirement Benefit Accounting Changes
The Financial Accounting Standards Board (FASB), which is expected to release draft rules March 31, 2006, on accounting for postretirement benefits, decided at its most recent meeting to ask companies to comment on the proposed effective dates of the new rules and to explain the obstacles they will face in meeting them. President Signs Bill to Increase PBGC Premiums
President Bush signed a federal budget bill Feb. 8, 2006, that will substantially increase the Pension Benefit Guaranty Corporation (PBGC) premiums single- and multi-employer plans pay. President’s Budget Includes Health Care, Pension Proposals
Many Employers May Face Medicare Part D Filing Requirements
Employers, even those that do not offer retiree medical benefits, may be required to file reports with federal officials regarding prescription drug coverage, under the new Medicare Part D prescription drug benefit. SEC Proposes New Disclosure Rules for Executive Compensation
Under the Securities and Exchange Commission's recent proposal, companies would have to disclose far more details about the pay and perks provided to named executive officers. Congress Increases PBGC Premiums
Pension plan sponsors will pay higher Pension Benefit Guaranty Corporation (PBGC) premiums
this year, now that the Deficit Reduction Act has been signed into law. The act increases flat-rate premiums for single-employer and multiemployer plans. It also establishes a new premium
for single-employer plans that undergo involuntary terminations or distress terminations in
connection with a bankruptcy reorganization. 2007 Budget Would Expand HSAs, Calls for Pension Reform
President Bush sent Congress his budget proposal for fiscal year 2007 on February 6, 2006. The
budget puts renewed emphasis on health care initiatives, proposing to expand health savings
accounts (HSAs), encourage greater transparency about health care cost and quality, authorize
association health plans (AHPs) and improve health information technology. IRS Proposes Roth 401(k) Regulations
The IRS has issued Roth 401(k) proposed regulations, which are in addition to the regulations
that were finalized by the agency last month. The final regulations dealt primarily with plan
qualification issues. These proposed regulations address the taxation of distributions and other
related issues. Marking to Market: A Second Look
A couple of months ago, Watson Wyatt projected the effects of phase 1 of the Financial
Accounting Standards Board's (FASB) proposal to change accounting standards for pensions and
postretirement benefit plans. Phase 1 focuses on disclosing the funded status of postretirement
benefit obligations on corporate balance sheets. As the details of FASB's approach have evolved, we have undertaken a second analysis. Multiemployer Plans Must Give Annual Notice of Funded Status
The U.S. Department of Labor (DOL) recently released a final regulation implementing the
annual funding notice requirements for multiemployer defined benefit plans, which were added
by the Pension Funding Equity Act of 2004. Under the act, plan administrators of multiemployer
defined benefit plans must annually notify interested parties of the plan's funded status.
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