Single-employer defined benefit plan belongs in a plan-specific employer file. A single-employer plan is maintained by one employer or its controlled group. The sponsor can identify its obligation and plan assets and therefore applies the full funded-status, cost, and OCI model.
Apply it
Cedar Trail's own final-pay plan has a $20 million PBO and $16.15 million of plan assets. Its employer balance sheet recognizes the $3.85 million underfunded status.
Common mistake
Do not assume that one employer may net every pension plan before recognizing funded status. Measure and recognize each plan's funded status before applying the presentation rules for overfunded and underfunded plans. That error would hide an underfunded plan behind the assets of a different overfunded plan.
Keep the boundary clear
Do not allocate a jointly administered multiemployer plan's total obligation using contribution percentages. The single-employer route depends on a plan-specific obligation and asset population.
Authority
Read ASC 715-30-25-1 for recognition of a pension plan funded-status asset or liability.
Put the concept to work
Apply this concept
- Explain and apply single-employer defined benefit plan 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
- Defined benefit pension plan — Apply
To apply this concept: Required. This prior concept supplies the plan route or reconciled input required here.