ACCT 3021 Lecture : New Chp 20 Class Notes
Document Summary
Erisa (employee retirement income security act of 1974) requires companies to fund their pension plan in an orderly manner so that the employee is protected at retirement. Sfas 87 employers" accounting for pensions******* Sfas 88 employers" accounting for settlement and curtailments of. Defined benefit pension plans for terminated benefits (defined) Long document that is effective for the planned year 2008. Sfas 158 amendment to sfas 87****** Pension funds are separate legal entities and have their own separate audit. This chapter focuses on the employer"s pension accounting, not the employee"s. Pension protection act 2006 **uses automatic enrollment. Employer"s annual cost (pension expense) is the amount that they are obligated to contribute. Contribution (defined) ee pays part of the cost. *in substance, assets still belong to the employer. *usually year of service compensation level (right before retirement) Pv of these future benefits, and that is how much the employer should contribute (fund) in a given year.
