Pension curtailment requires a named plan, population, date, and evidence owner. A curtailment is a significant reduction in expected future service or future benefit accruals that meets Topic 715's criteria. Its date, population, and remeasurement must be supported.
Apply it
A workforce event affecting a small group is not automatically a curtailment. A broad freeze may qualify, but only after the plan and employee facts meet the accounting definition.
Common mistake
Do not assume that any workforce reduction is a pension curtailment. A curtailment requires the event-specific reduction in expected future service or elimination of future benefit accruals under the guidance. That error would accelerate recognition without proving the event meets the curtailment conditions.
Keep the boundary clear
Do not classify from a restructuring label or desired gain. Legal, human-resources, actuarial, and accounting evidence determines the event and its measured effect.
Authority
Read ASC 715-30-35-92 for recognition for pension curtailments.
Put the concept to work
Apply this concept
- Explain and apply pension curtailment within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
Learning resources
Choose a lesson, try an application, or inspect the sources behind this concept.
Build on these ideas
- Pension plan amendment — Apply
To apply this concept: Required. This prior concept supplies the terms, date, or measurement needed here.