Accounting for Pensions and Postretirement Benefits - 2022 (Text Based)

In 2021, the Congressional Research Service reported that over 70% of all U.S. workers have access to employer-sponsored pensions. The need to properly administer and account for pension funds is critical. There are very specific requirements for pension accounting and postretirement benefits. ASC 715 Compensation-Retirement Benefits provides guidance on financial reporting for employers who offer pension benefits to their employees. ASC 960 Plan Accounting-Defined Benefit Pension Plans and ASC 962 Plan Accounting-Defined Contribution Pension Plans address the plan accounting standards for defined benefit plans and defined contribution plans respectively. Those detailed calculations of pension cost and reporting requirements produce a complex accounting standard.

This course is designed to help you navigate the complexities of this standard. It begins with an overview of the pension system in the U.S. discussing the nature of pension plans, plan participants' activities, the classification of pension plans, and types of pension plans and their characteristics. It addresses the significance of pension federal laws, including the Employee Retirement Income Security Act, the Pension Protection Act, the Multiemployer Pension Reform Act, and the American Rescue Plan Act. This course also provides current coverage of the requirements for accounting and reporting on pension plans and postretirement benefits. It includes specific examples to illustrate the application. Relevant references to and excerpts from ASC 715, ASC 960, and ASC 962 are discussed throughout the course.

Learning Objectives:

1. Identify the key provisions of pension federal laws

2. Distinguish between defined benefit and defined contribution plans

3. Identify the way to evaluate plan assets

4. Recognize various measures of pension obligations

5. Identify the components of pension expense

6. Recognize the pension assets (overfunded plan) and pension liabilities (unfunded plan)

7. Identify the unique accounting practice of postretirement benefits

8. Recognize the reporting requirements for the employer and pension plans