# ASC 715-60-35: Compensation—Retirement Benefits — Defined Benefit Plans—Other Postretirement — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/60/#35-subsequent-measurement) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:009eccbfb1866c6fce494e19f790cafbed01e7d78d7f2345b03fdf45e30903f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-60-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/715/60/#35-subsequent-measurement) SEC content: no #### Use of Reasonable Approximations ##### [715-60-35-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:3f12f577ed4b0e23a575d53c543048b7dfc483d88b2a4ddc7c2a545b4f2c6dc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic is intended to specify accounting objectives and results rather than computational means of obtaining those results. If estimates, averages, or computational shortcuts can reduce the cost of applying this Subtopic, their use is appropriate, provided the results are reasonably expected not to be materially different from the results of a detailed application. #### Benefit Obligations ##### [715-60-35-1A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:cbfa9ab5e5907988e78e5aa337b2b3af798320b114b64b9ec917206c624e5e01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic uses two terms to describe certain measures of the obligation to provide [postretirement benefits](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefits "All forms of benefits, other than retirement income, provided by an employer to retirees. Those benefits may be defined in terms of specified benefits, such as health care, tuition assistance, or legal services, that are provided to retirees as the need for those benefits arises, such as certain health care benefits, or they may be defined in terms of monetary amounts that become payable on the occurrence of a specified event, such as life insurance benefits."): [expected postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/e/#expected-postretirement-benefit-obligation "The actuarial present value as of a particular date of the postretirement benefits expected to be paid by the employer's plan to or for each employee, the employee's beneficiaries, and any covered dependents pursuant to the terms of the plan.") and [accumulated postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/a/#accumulated-postretirement-benefit-obligation "The actuarial present value as of a particular date of all future benefits attributed to an employee's service rendered to that date assuming the plan continues in effect and that all assumptions about future events are fulfilled. The accumulated postretirement benefit obligation generally reflects a ratable allocation of expected future benefits to employee service already rendered in the attribution period. Before an employee's full eligibility date, the accumulated postretirement benefit obligation as of a particular date for an employee is the portion of the expected postretirement benefit obligation attributed to that employee's service rendered to that date; on and after the full eligibility date, the accumulated and expected postretirement benefit obligations for an employee are the same."). ##### [715-60-35-2](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:67e0452368b7227a72644a9e8762872fe8adba92b58ae5a31f2b4db8fb0e8914 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Measurement of the expected postretirement benefit obligation is based on the expected amount and timing of future [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment."), taking into consideration the expected future cost of providing the benefits and the extent to which those costs are shared by the employer, the employee (including consideration of contributions required during the employee's active service period and following retirement, deductibles, coinsurance provisions, and so forth), or others (such as through governmental programs). ##### [715-60-35-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d340771849030cb31b51a76033ccac9bfaac3f54ad3c6858e95e1ba448bcb568 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accumulated postretirement benefit obligation is the [actuarial present value](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value "The value, as of a specified date, of an amount or series of amounts payable or receivable thereafter, with each amount adjusted to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements for events such as death, disability, withdrawal, or retirement) between the specified date and the expected date of payment.") of all future benefits attributed to an employee's service rendered to a particular date pursuant to paragraphs [715-60-35-16 through 35-20](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-16) , [715-60-35-62](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-62), and [715-60-35-66](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-66), assuming the [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") continues in effect and all [assumptions](https://asc.understandingaccounting.org/glossary/a/#assumptions "Estimates of the occurrence of future events affecting pension costs and other postretirement benefit costs (as applicable), such as turnover, retirement age, mortality, withdrawal, disablement, dependency status, per capita claims costs by age, health care cost trend rates, levels of Medicare and other health care providers' reimbursements, changes in compensation and national pension benefits, and discount rates to reflect the time value of money.") about future events are fulfilled. ##### [715-60-35-4](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e1e5cf22d6f18acbd327b338ac707f7ed9fb8d80907ee640a0760faeace68688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accumulated postretirement benefit obligation generally reflects a ratable allocation of expected future benefits to employee service already rendered in the [attribution period](https://asc.understandingaccounting.org/glossary/a/#attribution-period "The period of an employee's service to which the expected postretirement benefit obligation for that employee is assigned. The beginning of the attribution period is the employee's date of hire unless the plan's benefit formula grants credit only for service from a later date, in which case the beginning of the attribution period is generally the beginning of that credited service period. The end of the attribution period is the full eligibility date. Within the attribution period, an equal amount of the expected postretirement benefit obligation is attributed to each year of service unless the plan's benefit formula attributes a disproportionate share of the expected postretirement benefit obligation to employees' early years of service. In that case, benefits are attributed in accordance with the plan's benefit formula. See Credited Service Period."). ##### [715-60-35-5](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8bcf27b8f64a8491ad75eb248a3080d944f7d2d6a7f7a2c31adfb2f137c23a20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer that sponsors one or more single-employer defined benefit other postretirement plans other than pensions shall measure the funded status for each plan as the difference between the fair value of [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") and the accumulated postretirement benefit obligation as it is defined in this Subtopic. ##### [715-60-35-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:cff13629733cdff1d1f9faf07f96c2b00280b558921bd5881889581d7d100c63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-35 through 55-39](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-35) for an illustration of the terms _expected postretirement benefit obligation_ and _accumulated postretirement benefit obligation_. #### Components of Net Periodic Postretirement Benefit Cost ##### [715-60-35-7](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:902d907fc5b7d842d6ea3a37642b8627170c9ae1c72cf8260fc7b3226c2de88b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As with other forms of deferred compensation, the cost of providing postretirement benefits shall be attributed to the periods of employee service rendered in exchange for those future benefits pursuant to the terms of the plan. That cost notionally represents the change in the [unfunded accumulated postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/u/#unfunded-accumulated-postretirement-benefit-obligation "The accumulated postretirement benefit obligation in excess of the fair value of plan assets.") for the period, ignoring employer contributions to the plan, plan settlements, and payments made by the employer directly to [retirees](https://asc.understandingaccounting.org/glossary/r/#retirees "Collectively, that group of plan participants that includes retired employees, their beneficiaries, and covered dependents."). However, changes in that unfunded obligation that arise from experience gains and losses and the effects of changes in assumptions may be recognized as a component of [net periodic postretirement benefit cost](https://asc.understandingaccounting.org/glossary/n/#net-periodic-postretirement-benefit-cost "The amount recognized in an employer's financial statements as the cost of a postretirement benefit plan for a period. Components of net periodic postretirement benefit cost include service cost, interest cost, actual return on plan assets, gain or loss, amortization of prior service cost or credit, and amortization of the transition obligation or asset.") on a delayed basis. In addition, the effects of a plan initiation or amendment generally are recognized on a delayed basis. ##### [715-60-35-8](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f66febd17aa106e8365f747580d17f9cb18bb4671be1595edd36df28e10faff1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Thus, any change in the accumulated postretirement benefit obligation or the plan assets (other than contributions and benefit payments) either is initially recognized in other comprehensive income or is included in net periodic postretirement benefit cost. Contributions to a funded plan by the employer decrease the recognized postretirement benefit liability or increase the recognized postretirement benefit asset. ##### [715-60-35-9](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e9ffd976eed0ee7fff96161246848fbc31620fefbfa5abf3a8557d0794770cbc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net periodic postretirement benefit cost comprises several components that reflect different aspects of the employer's financial arrangements. All of the following components shall be included in the net periodic postretirement benefit cost recognized by an employer sponsoring a [defined benefit postretirement plan](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)"): 1. a [Service cost](https://asc.understandingaccounting.org/glossary/s/#service-cost-component-of-net-periodic-postretirement-benefit-cost "The actuarial present value of benefits attributed to services rendered by employees during the period (the portion of the expected postretirement benefit obligation attributed to service in the period). The service cost component is the same for an unfunded plan, a plan with minimal funding, and a well-funded plan.") (see the following paragraph). 2. b [Interest cost](https://asc.understandingaccounting.org/glossary/i/#interest-cost-component-of-net-periodic-postretirement-benefit-cost "The increase in the accumulated postretirement benefit obligation to recognize the effects of the passage of time.") (see paragraph [715-60-35-11](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-11)). The interest cost component of postretirement benefit cost shall not be considered interest for purposes of applying Subtopic 835-20. 3. c [Actual return on plan assets](https://asc.understandingaccounting.org/glossary/a/#actual-return-on-plan-assets-component-of-net-periodic-postretirement-benefit-cost "The change in the fair value of the plan's assets for a period including the decrease due to expenses incurred during the period (such as income tax expense incurred by the fund, if applicable), adjusted for contributions and benefit payments during the period. For a funded plan, the actual return on plan assets shall be determined based on the fair value of plan assets (see paragraph 715-60-35-107) at the beginning and end of the period, adjusted for contributions and benefit payments. If the fund holding the plan assets is a taxable entity, the actual return on plan assets shall reflect the tax expense or benefit for the period determined in accordance with generally accepted accounting principles (GAAP). Otherwise, no provision for taxes shall be included in the actual return on plan assets."), if any (see paragraphs [715-60-35-23 through 35-36](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23) ) 4. d [Amortization](https://asc.understandingaccounting.org/glossary/a/#amortization "The process of reducing a recognized liability systematically by recognizing gains or by reducing a recognized asset systematically by recognizing losses. In accounting for pension benefits or other postretirement benefits, amortization also means the systematic recognition in net periodic pension cost or other postretirement benefit cost over several periods of amounts previously recognized in other comprehensive income, that is, gains or losses, prior service cost or credits, and any transition obligation or asset.") of any [prior service cost](https://asc.understandingaccounting.org/glossary/p/#prior-service-cost "The cost of retroactive benefits granted in a plan amendment. Retroactive benefits are benefits granted in a plan amendment (or initiation) that are attributed by the benefit formula to employee services rendered in periods before the amendment.") or credit included in accumulated other comprehensive income to the extent required by paragraphs [715-60-35-13 through 35-20](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-13) . 5. e [Gain or loss](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss "A change in the value of either the benefit obligation (projected benefit obligation for pension plans or accumulated postretirement benefit obligation for other postretirement benefit plans) or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the other postretirement benefit substantive plan. Gains or losses that are not recognized in net periodic pension cost or net periodic postretirement benefit cost when they arise are recognized in other comprehensive income. Those gains or losses are subsequently recognized as a component of net periodic pension cost or net periodic postretirement benefit cost based on the recognition and amortization provisions of Subtopic 715-30 or Subtopic 715-60.") (including the effects of changes in assumptions) to the extent recognized, which includes amortization of the net gain or loss included in accumulated other comprehensive income (see paragraphs [715-60-35-23 through 35-36](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23) ). 6. f Amortization of any obligation or asset existing at the date of initial application of this Subtopic, hereinafter referred to as the [transition obligation](https://asc.understandingaccounting.org/glossary/t/#transition-obligation "The amount, as of the date Subtopic 715-60 was initially applied, of the accumulated postretirement benefit obligation in excess of the fair value of plan assets plus any recognized accrued postretirement benefit cost or less any recognized prepaid postretirement benefit cost.") or [transition asset](https://asc.understandingaccounting.org/glossary/t/#transition-asset "The amount, as of the date Subtopic 715-60 was initially applied, of the fair value of plan assets plus any recognized accrued postretirement benefit cost or less any recognized prepaid postretirement benefit cost in excess of the accumulated postretirement benefit obligation.") remaining in accumulated other comprehensive income (see paragraphs [715-60-35-38 through 35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-38) ). ##### [715-60-35-10](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0f50e69dc80aa42791a9d1d9ef19e16a4af06821647b84bf91df1af01f0e7280 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurement of the service cost component requires identification of the [substantive plan](https://asc.understandingaccounting.org/glossary/s/#substantive-plan "The terms of the postretirement benefit plan as understood by an employer that provides postretirement benefits and the employees who render services in exchange for those benefits. The substantive plan is the basis for the accounting for that exchange transaction. In some situations an employer's cost-sharing policy, as evidenced by past practice or by communication of intended changes to a plan's cost-sharing provisions, or a past practice of regular increases in certain monetary benefits, may indicate that the substantive plan differs from the extant written plan.") and the use of assumptions and an [attribution](https://asc.understandingaccounting.org/glossary/a/#attribution "The process of assigning pension or other postretirement benefits or costs to periods of employee service.") method, which are discussed in paragraphs [715-60-35-48 through 35-105](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-48) . ##### [715-60-35-10A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-10A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:12105e915af591694938e21aa0a3d649922a67a3122694a000981bfe6ea601bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The service cost component shall be the only component of net periodic postretirement benefit cost eligible to be capitalized as part of the cost of inventory or other assets. ##### [715-60-35-11](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9e246a8a888f09d86e36a7f0bece7f7ba4218230d926ee83958de4090a80f960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest cost is the interest on the accumulated postretirement benefit obligation, which is a discounted amount. Measuring the accumulated postretirement benefit obligation as a present value requires accrual of an interest cost at rates equal to the assumed [discount rates](https://asc.understandingaccounting.org/glossary/d/#discount-rate "A rate or rates used to reflect the time value of money. Discount rates are used in determining the present value as of the measurement date of future cash flows currently expected to be required to satisfy the pension obligation or other postretirement benefit obligation. See Actuarial Present Value."). ##### [715-60-35-12](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:6c9e26e3648d4225ce582e7520c93d34050c33cc2511bb554b5e37c1f52060bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In measuring an employer's expected and accumulated postretirement benefit obligations, changes in in-kind benefits covered by a postretirement health care plan or by other postretirement benefit plans shall not be anticipated. However, if the employer amends the benefits to be provided by the plan, the effect of the amendment is recognized immediately in measuring the employer's expected and accumulated postretirement benefit obligations, even if the effective date of the change in benefits is delayed until a specified date in the future. ##### [715-60-35-13](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:602c03422d8040b400622aff9dcc9a9ff794b5294768412a5957dbe0b7dd21dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Plan amendments](https://asc.understandingaccounting.org/glossary/p/#plan-amendment "A change in the existing terms of a plan or the initiation of a new plan. A plan amendment may increase benefits (a positive plan amendment), or reduce or eliminate benefits (a negative plan amendment), including those benefits attributed to years of service already rendered.") (including initiation of a plan) may include provisions that attribute the increase or reduction in benefits to employee service rendered in prior periods or only to employee service to be rendered in future periods. ##### [715-60-35-14](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:edf01bfdbb999a36e27232963a9a2058ef1b8ed55fade544921683979bf8a902 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of measuring the accumulated postretirement benefit obligation, the effect of a [plan amendment](https://asc.understandingaccounting.org/glossary/p/#plan-amendment "A change in the existing terms of a plan or the initiation of a new plan. A plan amendment may increase benefits (a positive plan amendment), or reduce or eliminate benefits (a negative plan amendment), including those benefits attributed to years of service already rendered.") on a plan participant's expected postretirement benefit obligation shall be attributed to each year of service in that plan participant's attribution period, including years of service already rendered by that [plan participant](https://asc.understandingaccounting.org/glossary/p/#plan-participant "Any employee or former employee who has rendered service in the credited service period and is expected to receive employer-provided benefits under the postretirement benefit plan, including benefits to or for any beneficiaries and covered dependents. See Active Plan Participant."), in accordance with the attribution of the expected postretirement benefit obligation to years of service as discussed in paragraphs [715-60-35-62](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-62) and [715-60-35-66](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-66). If a plan is initiated that grants benefits solely in exchange for employee service after the date of the plan initiation or a future date, no portion of the expected postretirement benefit obligation is attributed to prior service periods because, in that case, the [credited service period](https://asc.understandingaccounting.org/glossary/c/#credited-service-period "Employee service period for which benefits are earned pursuant to the terms of the plan. The beginning of the credited service period may be the date of hire or a later date. For example, a plan may provide benefits only for service rendered after a specified age. Service beyond the end of the credited service period does not earn any additional benefits under the plan. See Attribution Period.") for the current employees who are expected to receive benefits under the plan begins at the date of the plan initiation or the future date. ##### [715-60-35-15](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:641122a39e785f89553e5a9548b962636cd806e0a87572f2073cdd22d599a02a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan amendments that improve benefits are granted with the expectation that the employer will realize economic benefits in future periods. Consequently, except as discussed in paragraph [715-60-35-19](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-19) this Subtopic does not permit the cost of benefit improvements (that is, prior service cost) to be included in net periodic postretirement benefit cost entirely in the year of the amendment. Rather, paragraphs [715-60-35-16 through 35-17](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-16) requires that prior service cost arising from a plan initiation or plan amendment shall be recognized initially in other comprehensive income with subsequent amortization in net periodic postretirement benefit cost, at a minimum, by assigning an equal amount of the prior service cost to each remaining year of service to the [full eligibility date](https://asc.understandingaccounting.org/glossary/f/#full-eligibility-date "The date at which an employee has rendered all of the service necessary to have earned the right to receive all of the benefits expected to be received by that employee (including any beneficiaries and dependents expected to receive benefits). Determination of the full eligibility date is affected by plan terms that provide incremental benefits expected to be received by or on behalf of an employee for additional years of service, unless those incremental benefits are trivial. Determination of the full eligibility date is not affected by plan terms that define when benefit payments commence or by an employee's current marital or dependency status.") of each plan participant active at the date of the plan initiation or amendment. (See paragraphs [715-60-35-20 through 35-22](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-20) for plan amendments that reduce benefits.) ##### [715-60-35-16](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5ccb86ee9f0bded638806517602a78fccf55788b1b83454b2de9ec332b5e96d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan amendment that retroactively increases benefits (including benefits that are granted to fully eligible plan participants) increases the accumulated postretirement benefit obligation. The cost of the benefit improvement shall be recognized as a charge to other comprehensive income at the date of the amendment. ##### [715-60-35-17](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5496e34521924b80fc263264dfeef0217e98bb29313d9dda563f14ebeaaad04b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as stated in this paragraph and in paragraphs [715-60-35-18 through 35-19](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-18) , prior service cost shall be amortized as a component of net periodic postretirement benefit cost by assigning an equal amount to each remaining year of service to the full eligibility date of each plan participant active at the date of the amendment who was not yet fully eligible for benefits at that date. To determine total remaining service years before full eligibility, consideration is given to the remaining number of years of service to the full eligibility date of each plan participant or group of plan participants active at the date of the plan amendment who is not yet fully eligible for benefits. In determining the amortization period, future years of service of active employees who are not plan participants are excluded. Thus, the portion of prior service cost to be recognized in net periodic postretirement benefit cost in each of those future years is weighted based on the number of those plan participants expected to render service in each of those future years. If all or almost all of a plan's participants are fully eligible for benefits, the prior service cost shall be amortized based on the remaining life expectancy of those plan participants rather than on the remaining years of service to the full eligibility dates of the [active plan participants](https://asc.understandingaccounting.org/glossary/a/#active-plan-participant "Any active employee who has rendered service during the credited service period and is expected to receive benefits, including benefits to or for any beneficiaries and covered dependents, under the postretirement benefit plan. See Plan Participant."). Other comprehensive income is adjusted as a result of amortizing prior service cost. ##### [715-60-35-18](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:66f1ec16d18219f71010795b9a0e9a8b19f8c9431501bec7c6b51587185935bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To reduce the complexity and detail of the computations required, consistent use of an alternative approach that more rapidly amortizes the prior service cost recognized in accumulated other comprehensive income is permitted. For example, a straight-line amortization of the cost over the average remaining years of service to [full eligibility for benefits](https://asc.understandingaccounting.org/glossary/f/#full-eligibility-for-benefits "The status of an employee having reached the employee's full eligibility date. Full eligibility for benefits is achieved by meeting specified age, service, or age and service requirements of the postretirement benefit plan. See Full Eligibility Date.") of the active plan participants is acceptable. ##### [715-60-35-19](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:2c9d2cdc2ef3c0cff5f2a6c727dae2090402aab05be69b92407e771586758507 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some situations, a history of regular plan amendments and other evidence may indicate that the period during which the employer expects to realize economic benefits from an amendment that grants increased benefits is shorter than the remaining years of service to full eligibility for benefits of the active plan participants. Identification of those situations requires an assessment of the individual circumstances of the particular plan. In those circumstances, the amortization of prior service cost shall be accelerated to reflect the more rapid expiration of the employer's economic benefits and to recognize the cost in the periods benefited. ##### [715-60-35-20](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:b27068d17a6ccb66e102d8dc294a44731666fa29bde973eaca521c4bfb06ccaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan amendment that retroactively reduces, rather than increases, benefits decreases the accumulated postretirement benefit obligation. The reduction in benefits shall be recognized as a corresponding credit (prior service credit) to other comprehensive income that shall be used first to reduce any remaining prior service cost included in accumulated other comprehensive income, then to reduce any transition obligation remaining in accumulated other comprehensive income. The excess, if any, shall be amortized as a component of net periodic postretirement benefit cost on the same basis as specified in paragraphs [715-60-35-16 through 35-17](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-16) for prior service cost. Immediate recognition of the excess is not permitted. However, as with a plan amendment that increases benefits, the effect of a negative plan amendment (an amendment that decreases benefits) is reflected immediately in the measurement of the accumulated postretirement benefit obligation. ##### [715-60-35-21](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e4cc98963b023e9533a193fcf7db9d928e9ba4634a82b58889082d1d761803e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of a plan amendment, whether positive or negative, shall be considered at the date the amendment is adopted only if it is communicated to plan participants at that time or within a reasonable period of time thereafter; that is, within the time period that would ordinarily be required to prepare information about the amendment and disseminate it to employees and retirees. ##### [715-60-35-22](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8ba0f1287c23d8bbf0d87008e605e24def956b8fd49be62c3a34a19ed5f6cc93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-19 through 55-21](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-19) and [715-60-55-140 through 55-160](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-140) for implementation guidance on plan amendments. ##### [715-60-35-23](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:12a52bc131e127e179765e40578ed907fcac52059be7bd39e4f92cb8908d7409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic generally does not distinguish between gains and losses that result from experience different than assumed or from changes in assumptions. Gains and losses include amounts that have been realized, for example, by the sale of a security, as well as amounts that are unrealized. ##### [715-60-35-24](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9dda905c94679a2fb46e30d0362b03ad3dc9727fa0afe6544e0ee8f62ed11720 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because gains and losses may reflect refinements in estimates as well as real changes in economic values and because some gains in one period may be offset by losses in another or vice versa, this Subtopic does not require recognition of gains and losses as components of net postretirement benefit cost in the period in which they arise, except as described in paragraphs [715-60-35-34 through 35-35](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-34) . ##### [715-60-35-25](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:02fb69260a75051fba48c75cf2b01cf25c53c03ce818807e5f6f18a6d41ac282 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and losses that are not recognized immediately as a component of net periodic postretirement benefit cost shall be recognized as increases or decreases in other comprehensive income as they arise. (Gain and loss recognition in accounting for settlements and curtailments is addressed in paragraphs [715-60-35-149 through 35-171](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-149) .) ##### [715-60-35-26](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:26eff41e1dafaf3dce4f6da5b50d00f9bd889317debe72d2503697687b18955b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [expected return on plan assets](https://asc.understandingaccounting.org/glossary/e/#expected-return-on-plan-assets "An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of plan assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.") shall be determined based on the [expected long-term rate of return on plan assets](https://asc.understandingaccounting.org/glossary/e/#expected-long-term-rate-of-return-on-plan-assets "An assumption about the rate of return on plan assets reflecting the average rate of earnings expected on existing plan assets and expected contributions to the plan during the period.") (see paragraphs [715-60-35-84 through 35-87](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-84) ) and the [market-related value of plan assets](https://asc.understandingaccounting.org/glossary/m/#market-related-value-of-plan-assets "A balance used to calculate the expected return on plan assets. The market-related value of plan assets is either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. Different ways of calculating market-related value may be used for different classes of assets (for example, an employer might use fair value for bonds and a five-year-moving-average value for equities), but the manner of determining market-related value is required to be applied consistently from year to year for each asset class. For a method to meet the criteria of being systematic and rational, it must reflect only the changes in the fair value of plan assets between various dates."). If the fund holding plan assets is a taxable entity, the expected long-term rate of return on plan assets is net of estimated income taxes. ##### [715-60-35-27](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:133e6a9b9ed2f15b9592f4e197902fa2a35b16e3967597609212229627ff79f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan asset gains and losses are differences between the actual return on plan assets during a period and the expected return on plan assets for that period. Plan asset gains and losses include both of the following: 1. a Changes reflected in the market-related value of plan assets 2. b Changes not yet reflected in the market-related value of plan assets (that is, the difference between the fair value and the market-related value of plan assets). ##### [715-60-35-28](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1ddcad629fa3d8948cf47e8f355829abd4eafb1e2b1101e0b48be5d4c5d1ea7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan asset gains and losses not yet reflected in market-related value are not required to be amortized under the following paragraph and paragraphs [715-60-35-31 through 35-32](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-31) . ##### [715-60-35-29](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-29) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9d171b068ac5d31c1d0638ef81386afa5b6f68e5a4d37cb123ac63f768fccc7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As a minimum, amortization of a net gain or loss included in accumulated other comprehensive income (excluding plan asset gains and losses not yet reflected in market-related value) shall be included as a component of net periodic postretirement benefit cost for a year if, as of the beginning of the year, that net [gain or loss](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss "A change in the value of either the benefit obligation (projected benefit obligation for pension plans or accumulated postretirement benefit obligation for other postretirement benefit plans) or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the other postretirement benefit substantive plan. Gains or losses that are not recognized in net periodic pension cost or net periodic postretirement benefit cost when they arise are recognized in other comprehensive income. Those gains or losses are subsequently recognized as a component of net periodic pension cost or net periodic postretirement benefit cost based on the recognition and amortization provisions of Subtopic 715-30 or Subtopic 715-60.") exceeds 10 percent of the greater of the accumulated postretirement benefit obligation or the market-related value of plan assets. If amortization is required, the minimum amortization shall be that excess divided by the average remaining service period of active plan participants. If all or almost all of a plan's participants are inactive, the average remaining life expectancy of the inactive participants shall be used instead of the average remaining service period. ##### [715-60-35-30](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-30) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a5c38b151ed734a0a8a0cafd56fdd60ec515fbf214fff4d43291a920667cf927 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amortization shall reduce the beginning-of-the-year balance included in accumulated other comprehensive income. Amortization of a net gain included in accumulated other comprehensive income results in a decrease in net periodic postretirement benefit cost; amortization of a net loss included in accumulated other comprehensive income results in an increase in net periodic postretirement benefit cost. ##### [715-60-35-31](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-31) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5d3736441cceb73e6054177eb12443d2035432d0732bfeb01839d9d60e4d13cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any systematic method of amortizing gains and losses included in accumulated other comprehensive income may be used in place of the minimum amortization specified in paragraph [715-60-35-29](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-29) provided that all of the following conditions are met: 1. a The minimum amortization is recognized in any period in which it is greater (reduces the net gain or loss balance by more) than the amount that would be recognized under the method used. 2. b The method is applied consistently. 3. c The method is applied similarly to both gains and losses. ##### [715-60-35-32](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-32) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d7be4c327433f76d62d1e70a9c96f5b10c8f0ec4b8773efad13907a9cf8996ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity uses a method of consistently recognizing gains and losses immediately, any gain that does not offset a loss previously recognized in income pursuant to this paragraph shall first offset any transition obligation remaining in accumulated other comprehensive income; any loss that does not offset a gain previously recognized in income pursuant to this paragraph shall first offset any transition asset remaining in accumulated other comprehensive income. ##### [715-60-35-33](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-33) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:b0a79e8a33d88cc1d2e80d191a808f245ff7cb55d8b5d73f5212f56d83e67847 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In applying the provisions of paragraphs [715-60-35-29 through 35-32](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-29) for the recognition of gains and losses as a component of net periodic postretirement benefit cost, it is not appropriate for an employer to elect annually a new method of amortization of gains and losses included in accumulated other comprehensive income. Rather, an employer shall select an amortization method and apply it consistently from period to period as long as the resulting amortization equals or exceeds the minimum amortization specified by paragraph [715-60-35-29](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-29). Any change in the method selected would be subject to Topic 250. ##### [715-60-35-34](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-34) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8ddc2ef5241030100e0e7389fda670cae58e1c48a4b225d581043756f258b125 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some situations, an employer may forgive a retrospective adjustment of the current or past years' [cost-sharing provisions of the plan](https://asc.understandingaccounting.org/glossary/c/#cost-sharing-provisions-of-the-plan "The provisions of the postretirement benefit plan that describe how the costs of the covered benefits are to be shared between the employer and the plan participants. Cost-sharing provisions describe retired and active plan participants' contributions toward their postretirement health care benefits, deductibles, coinsurance, out-of-pocket limitations on participant costs, caps on employer costs, and so forth.") as they relate to benefit costs already incurred by retirees or may otherwise deviate from the provisions of the substantive plan to increase or decrease the employer's share of the benefit costs incurred in the current or past periods. The effect of a decision to temporarily deviate from the substantive plan shall be immediately recognized as a loss or gain. ##### [715-60-35-35](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-35) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:040d9c453e74e802b51f130eb81d05dc74e833f3ade53929412e13fa2ae61480 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, the terms of a substantive postretirement health care plan may provide that any shortfall resulting from current year benefit payments in excess of the employer's stated share of [incurred claims cost](https://asc.understandingaccounting.org/glossary/i/#incurred-claims-cost-by-age "The cost of providing the postretirement health care benefits covered by the plan to a plan participant, after adjusting for reimbursements from Medicare and other providers of health care benefits and for deductibles, coinsurance provisions, and other specific claims costs borne by the retiree. See Net Incurred Claims Cost (By Age).") and retiree contributions for that year is to be recovered from increased retiree contributions in the subsequent year. The employer may subsequently determine that increasing retiree contributions for the shortfall in the prior year would be onerous and decides to bear the cost of the shortfall for that year. The employer's decision to bear the shortfall represents a change in intent and the resulting loss shall be recognized immediately. Future decisions by the employer to continue to bear the shortfall suggest an amendment of the substantive plan that shall be accounted for as described in paragraphs [715-60-35-12 through 35-22](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-12) . ##### [715-60-35-36](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-36) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:174aee4155691e638db40afc64490fc14a51987ce4426ff140ce853d158f73de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [gain or loss component of net periodic postretirement benefit cost](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss-component-of-net-periodic-postretirement-benefit-cost "The sum of all of the following: The difference between the actual return on plan assets and the expected return on plan assets Any gain or loss immediately recognized or the amortization of the net gain or loss recognized in accumulated other comprehensive income Any amount immediately recognized as a gain or loss pursuant to a decision to temporarily deviate from the substantive plan. The gain or loss component is generally the net effect of delayed recognition in determining net periodic postretirement benefit cost of gains and losses (the net change in the net gain or loss recognized in accumulated other comprehensive income) except that it does not include changes in the accumulated postretirement benefit obligation occurring during the period and deferred for later recognition in net periodic postretirement benefit cost.") shall consist of all of the following: 1. a The difference between the actual return on plan assets and the expected return on plan assets 2. b Any gain or loss immediately recognized or the amortization of the net gain or loss included in accumulated other comprehensive income 3. c Any amount immediately recognized as a gain or loss pursuant to paragraphs [715-60-35-34 through 35-35](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-34) . ##### [715-60-35-37](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-37) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:89b9499555785f1bc65597df89ac2012838c404c4f6bcc36fc73d8e39375d059 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-22 through 55-25](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-22) for implementation guidance on gains and losses. ##### [715-60-35-38](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-38) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c189bfcf981461c99087da8c0a6f6099fe8aa0ada1a3b41baa5c1d4164320441 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortization of the transition obligation or asset shall be adjusted prospectively to recognize the effects of all of the following: 1. a A negative plan amendment pursuant to paragraph [715-60-35-20](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-20) 2. b A constraint on immediate recognition of a net gain or loss pursuant to paragraphs [715-60-35-31 through 35-32](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-31) 3. c [Settlement](https://asc.understandingaccounting.org/glossary/s/#settlement-of-a-pension-or-postretirement-benefit-obligation "A transaction that is an irrevocable action, relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and eliminates significant risks related to the obligation and the assets used to effect the settlement.") accounting pursuant to paragraphs [715-60-35-150 through 35-155](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) 4. d Plan curtailment accounting pursuant to paragraphs [715-60-35-161 through 35-171](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-161) 5. e A constraint on delayed amortization of the transition obligation pursuant to the following paragraph. ##### [715-60-35-39](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-39) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fca528f8133ba770291fa6ca6d57f30c4cd4597e757a28fd87092176661a2701 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amortization of the transition obligation shall be accelerated if the cumulative benefit payments after the date the employer first applied the provisions of this Subtopic to all plan participants exceed the cumulative postretirement benefit cost accrued after the transition date. In that situation, an additional amount of the transition obligation remaining in accumulated other comprehensive income shall be recognized as a component of net periodic postretirement benefit cost equal to the excess cumulative benefit payments. For purposes of applying this provision, cumulative benefit payments shall be reduced by any plan assets or any recognized accrued postretirement benefit obligation at the date the employer first applied the provisions of this Subtopic. Payments made pursuant to a settlement, as discussed in paragraphs [715-60-35-150 through 35-159](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) , shall be included in the determination of cumulative benefit payments made after the transition date. If a settlement occurs in the middle of the year, the additional transition obligation to be recognized in income, if any, pursuant to the constraint in this paragraph is determined based on projected amounts for the full year. ##### [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d659436d41ddf0f8fdf093afd65a77179e7b7580dff5afbb1dfaefc14ae431a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If at the measurement date for the beginning of an employer's fiscal year it is expected that additional recognition in net periodic postretirement benefit cost of any transition obligation remaining in accumulated other comprehensive income will be required pursuant to the preceding paragraph, amortization of the transition obligation for interim reporting purposes (see Topic 270) shall be based on the amount expected to be amortized for the year, except for the effects of applying the preceding paragraph for any settlement required to be accounted for pursuant to paragraphs [715-60-35-150 through 35-159](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) . Those effects shall be recognized in net periodic postretirement benefit cost when the related settlement is recognized in income. The effects of changes during the year in the initial assessment of whether additional recognition in net periodic postretirement benefit cost of the transition obligation remaining in accumulated other comprehensive income for the year shall be recognized in net periodic postretirement benefit cost over the remainder of the year. The amount of the transition obligation remaining in accumulated other comprehensive income to be recognized in net periodic postretirement benefit cost for a year shall be finally determined at the measurement date for the end of the year based on the constraints on delayed recognition in net periodic postretirement benefit cost discussed in the preceding paragraph; any difference between the amortization of the transition obligation recognized in net periodic postretirement benefit cost during interim periods and the amount required to be recognized in net periodic postretirement benefit cost for the year shall be recognized in net periodic postretirement benefit cost immediately. #### Measurement of Costs and Obligations ##### [715-60-35-41](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-41) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:2df43484d364354850243ab4b195d940b935528e00e9b5d352fc5192bd2e7d58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any method of accounting that recognizes the cost of postretirement benefits over employee service periods (before the payment of benefits to retirees) must deal with two factors that stem from the nature of the arrangement. First, estimates or assumptions shall be made about the future events that will determine the amount and timing of the benefit payments. Second, an attribution approach that assigns benefits and the cost of those benefits to individual years of service shall be selected. ##### [715-60-35-42](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-42) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7d6af7f7e02ac8fc6ca2947d8edadab93a559883de2a23eac82239bbb220e6f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unlike Subtopic 715-30, this Subtopic implicitly considers salary progression in the measurement of the accumulated postretirement benefit obligation of a [pay-related plan](https://asc.understandingaccounting.org/glossary/p/#pay-related-plan "A plan that has a benefit formula that bases benefits or benefit coverage on compensation, such as a final-pay or career-average-pay plan."). Because measurement of the expected postretirement benefit obligation includes an assumed salary progression for a pay-related plan, salary progression is, by definition, included in the accumulated benefit obligation for a pay-related [postretirement benefit plan](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefit-plan "See Plan."). Thus, the accumulated postretirement benefit obligation disclosed pursuant to Subtopic 715-20 is defined in terms notionally more comparable to the projected benefit obligation under Subtopic 715-30. ##### [715-60-35-43](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-43) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5c2551e0dc8e8d6180289abe670dba3819746309bfee3248d68e12e7bb526d72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For other postretirement plans that provide disability benefits, the determination of disability benefits to be accrued pursuant to this Subtopic is based on the terms of the postretirement benefit plan defining when a disabled employee is entitled to postretirement benefits. ##### [715-60-35-44](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-44) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:20473f46af636e51165d7002e7dcbb61e1c2f43b1b66d953017e612e01d7e4d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, an employer may promise to provide postretirement health care coverage to all employees who render 30 or more years of service. The employer may carry active employees who become disabled on active status so a disabled employee continues to accumulate credit toward postretirement benefits. Measurement of the expected postretirement benefit obligation shall include an assumption that some employees who are expected to receive benefits under the postretirement benefit plan will become disabled and cease working before the date at which they otherwise would have been eligible for [postretirement health care benefits](https://asc.understandingaccounting.org/glossary/p/#postretirement-health-care-benefits "A form of postretirement benefit provided by an employer to retirees for defined health care services or coverage of defined health care costs, such as hospital and medical coverage, dental benefits, and eye care."). The measurement of the postretirement benefits expected to be paid to disabled employees would encompass only those benefits expected to be paid during the period following what otherwise would have been their full eligibility date; in this case, the date at which the employee would have completed 30 years of service. That amount is attributed to an employee's service to the date the disability is assumed to occur. ##### [715-60-35-45](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-45) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:679feed6145ff9a907aa0b1d8fa2681fb3fe6056d9055e4bed42363c3dc832a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Only some employees become and remain disabled. Therefore, in measuring the expected postretirement benefit obligation and in determining the attribution period for plan participants expected to become disabled, the probability and timing of a disabling event is considered in determining whether employees are likely to become disabled and whether they will be entitled to receive postretirement benefits. ##### [715-60-35-46](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-46) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a3d45d675b429be31928a3339cafb4077ff0c0de6566e234526d6caf923a10fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that measurement of an employer's postretirement benefit obligation is based on the current plan participants (a closed group approach) because it better recognizes the benefit obligation over the period in which employees render service in exchange for benefits. ##### [715-60-35-47](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-47) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a01001ae19587ee7e3ff564e56a625a273f04d7f905fdaac3a06355784469a25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [715-60-35-48](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-48) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0ca7d5ad94e2696d747207fcd2d34818181f9f4b8ebe7177b4b44c1c82ae60ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An objective of this Subtopic is that the accounting reflect the terms of the exchange transaction that takes place between an employer that provides other postretirement benefits and the employees who render services in exchange for those benefits, as those terms are understood by both parties to the transaction. ##### [715-60-35-49](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-49) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f8a3ff120b895c407b78fb05b17bddd100793bc07e73b09c545d63a24dbbbb74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, the extant written plan provides the best evidence of the terms of that exchange transaction. However, in some situations, an employer's cost-sharing policy, as evidenced by past practice or by communication of intended changes to a plan's cost-sharing provisions, or a past practice of regular increases in certain monetary benefits (see paragraphs [715-60-35-51 through 35-56](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-51) ), may indicate that the substantive plan—the plan as understood by the parties to the exchange transaction—differs from the extant written plan. The substantive plan shall be the basis for the accounting. ##### [715-60-35-50](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-50) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:97f5f95dfc43087fea4aa8d7565fc9e4cc4d59f9292eefbc2824876190b62186 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [715-60-55-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-1) for implementation guidance on a collectively bargained defined benefit postretirement health care plan. ##### [715-60-35-51](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-51) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f0ab6750599ff87bea3843b716ae8374aa3ae3206b9923b613b7b12c0d94fded Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as provided in paragraphs [715-60-35-52 through 35-55](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-52) , an employer's cost-sharing policy, as evidenced by the following past practice or communication, shall constitute the cost-sharing provisions of the substantive plan if either of the following conditions exist: 1. a The employer has a past practice of maintaining a consistent level of cost sharing between the employer and its retirees through changes in deductibles, coinsurance provisions, retiree contributions, or some combination of those changes or consistently increasing or reducing the employer's share of the cost of the covered benefits through changes in retired or active plan participants' contributions toward their retiree health care benefits, deductibles, coinsurance provisions, out-of-pocket limitations, and so forth, in accordance with the employer's established cost-sharing policy Such a past practice would be indicated when the nature of the change and duration of the past practice are sufficient to warrant a presumption that it is understood by the plan participants. 2. b The employer has the ability, and has communicated to affected plan participants its intent, to institute different cost-sharing provisions at a specified time or when certain conditions exist (for example, when health care cost increases exceed a certain level). Otherwise, the extant written plan shall be considered to be the substantive plan. ##### [715-60-35-52](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-52) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e9448d201f719525bf1752ed7a346fcdeec130db59e68cb4c4df306a0c667575 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer's past practice of maintaining a consistent level of cost sharing with its retirees or consistently increasing or reducing its share of the cost of providing the covered benefits shall not constitute provisions of the substantive plan if accompanied by identifiable offsetting changes in other benefits or compensation or if the employer incurred significant costs, such as work stoppages, to effect that cost-sharing policy. ##### [715-60-35-53](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-53) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c58d4299073c418d61e14604eb123f460d6a594137fa20e06f7d8cf1727092ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, a past practice of increasing retiree contributions annually based on a specified index or formula may appear to indicate that the substantive plan includes a determinable indexing of the retirees' annual contributions to the plan. However, if that past practice of increasing retiree contributions is accompanied by identifiable offsetting changes in other benefits or compensation, those offsetting changes would indicate that the substantive plan incorporates only the current cost-sharing provisions. Therefore, future increases or reductions of those cost-sharing provisions shall not be incorporated in measuring the expected postretirement benefit obligation. ##### [715-60-35-54](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-54) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:47b9fbdc13e6299950a7b49b48c5be10c6797363fa340d09f5485fa7baa1c57f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, an employer's communication of its intent to institute cost-sharing provisions that differ from the extant written plan or the past cost-sharing practice shall not constitute provisions of the substantive plan if either of the following conditions exists: 1. a The plan participants would be unwilling to accept the change without adverse consequences to the employer's operations. 2. b Other modifications of the plan, such as the level of benefit coverage, or providing offsetting changes in other benefits, such as pension benefits, would be required to gain plan participants' acceptance of the change to the cost-sharing arrangement. ##### [715-60-35-55](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-55) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:65bfd157b229bfb6dc2a55f20e7a0c66fe12ac0815db27b8b911739bed9490f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. By definition, an employer does not have the unilateral right to change a collectively bargained plan. Therefore, if the postretirement benefits are the subject of collective bargaining, the extant written plan shall be the substantive plan unless the employer can demonstrate its ability to maintain a consistent level of cost sharing or a consistent practice of increasing or reducing its share of the cost of the covered benefits in past negotiations without making offsetting changes in other benefits or compensation of the affected plan participants or by incurring other significant costs to maintain that cost-sharing arrangement. ##### [715-60-35-56](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-56) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:86317e9f3c869b64b87e743ef9dc931c7e01d1456da3e46933c3969b9d6dc37f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A past practice of regular increases in postretirement benefits defined in terms of monetary amounts may indicate that the employer has a present commitment to make future improvements to the plan and that the plan will provide monetary benefits attributable to prior service that are greater than the monetary benefits defined by the extant written plan. In those situations, the substantive commitment to increase those benefits shall be the basis for the accounting. Changes in the benefits, other than benefits defined in terms of monetary amounts, covered by a postretirement health care plan or by other postretirement benefit plans shall not be anticipated. ##### [715-60-35-57](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-57) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:3eb3884b53ebf9c1f3df362ae4e59e9fef7987946c7e3c7cca9666524316406e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contributions expected to be received from active employees toward the cost of their postretirement benefits and from retired plan participants are treated similarly for purposes of measuring an employer's expected postretirement benefit obligation. That obligation is measured as the actuarial present value of the benefits expected to be provided under the plan, reduced by the actuarial present value of contributions expected to be received from the plan participants during their remaining active service and postretirement periods. In determining the amount of the contributions expected to be received from those participants toward the cost of their postretirement benefits, consideration is given to any related substantive plan provisions, such as an employer's past practice of consistently increasing or reducing the contribution rates as described in paragraphs [715-60-35-51 through 35-55](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-51) . An obligation to return contributions received from employees who do not attain eligibility for postretirement benefits and, if applicable, any interest accrued on those contributions shall be recognized as a component of an employer's postretirement benefit obligation. ##### [715-60-35-58](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-58) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9c06ca3512208eecfa67c66b19746311ad2153df1b3a0350391c9ba3deaea033 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Automatic benefit changes specified by the plan that are expected to occur shall be included in measurements of the expected and accumulated postretirement benefit obligations and the service cost component of net periodic postretirement benefit cost. ##### [715-60-35-59](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-59) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8f24153a3bd266cbf694dbe2db42588f72abde021914a53ee0cbd313048f01a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subtopic, a plan that promises to provide retirees a benefit in kind, such as health care benefits, rather than a defined dollar amount of benefit, is considered to be a plan that specifies automatic benefit changes. (The assumed rate of change in the future cost of providing health care benefits, the assumed [health care cost trend rate](https://asc.understandingaccounting.org/glossary/h/#health-care-cost-trend-rate "An assumption about the annual rates of change in the cost of health care benefits currently provided by the postretirement benefit plan, due to factors other than changes in the composition of the plan population by age and dependency status, for each year from the measurement date until the end of the period in which benefits are expected to be paid. The health care cost trend rates implicitly consider estimates of health care inflation, changes in health care utilization or delivery patterns, technological advances, and changes in the health status of the plan participants. Differing types of services, such as hospital care and dental care, may have different trend rates."), is discussed in paragraphs [715-60-35-99 through 35-101](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-99) .) Because automatic benefit changes are not conditional on employees rendering additional years of service, the full eligibility date is not affected by those changes. A benefit in kind includes the direct rendering of services, the payment directly to others who provide the services, or the reimbursement of the retiree's payment for those services. ##### [715-60-35-60](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-60) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:25bd642bd17427e3523fc512a08816d14c231c38adebabff2f1bbf29ec2df734 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Also, plan amendments shall be included in the computation of the expected and accumulated postretirement benefit obligations once they have been contractually agreed to, even if some provisions take effect only in future periods. For example, if a plan amendment grants a different benefit level for employees retiring after a future date, that increased or reduced benefit level shall be included in current-period measurements for employees expected to retire after that date. ##### [715-60-35-61](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-61) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7ad2d239e62ee37b71cd3181c679ca1037906e836b288f545c475d0e14018c98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the context of this Subtopic, attribution is the process of assigning the expected cost of benefits to periods of employee service. The general objective is to assign to each year of service the cost of benefits earned or assumed to have been earned in that year. ##### [715-60-35-62](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-62) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a385f11f0b1d410160da0741be4e10dbc8e054cd10cbb482c7191175c32271ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An equal amount of the expected postretirement benefit obligation for an employee generally shall be attributed to each year of service in the attribution period (a benefit-years-of-service approach). ##### [715-60-35-63](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-63) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:bd8b16e4f4683841a56aa3306a9d04e04caad554483e5584abba4eb0d30353d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some plans may frontload benefits, that is some plans have a [benefit formula](https://asc.understandingaccounting.org/glossary/b/#benefit-formula "The basis for determining benefits to which participants may be entitled under a postretirement benefit plan. A plan's benefit formula specifies the years of service to be rendered, age to be attained while in service, or a combination of both that must be met for an employee to be eligible to receive benefits under the plan. A plan's benefit formula may also define the beginning of the credited service period and the benefits earned for specific periods of service.") that defines benefits in terms of specific periods of service to be rendered in exchange for those benefits but attributes all or a disproportionate share of the expected postretirement benefit obligation to employees' early years of service in the attribution period. ##### [715-60-35-64](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-64) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c0c19fdf153658122e51a55135b9d460bfbdc7a7b6a93244d4ff525e80a52c48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For that type of plan, the expected postretirement benefit obligation shall not be attributed ratably to each year of service in the attribution period but shall be attributed in accordance with the plan's benefit formula. ##### [715-60-35-65](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-65) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f193148bc51e8eb7b8bd3cffdbd6fa22276073a937c5c54a3417abad995c1dbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether a plan is frontloaded is determined by considering the active participants as a group rather than applying the benefit formula to each individual participant. Paragraph [715-60-55-59](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-59) contains an example of a benefit formula that results in a frontloaded benefit for a plan that provides only postretirement death benefits. ##### [715-60-35-66](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-66) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1b963a6b0fdfe93c9d4925bf526b28f3b31ecc9ae0c99c3243ee6a234011f527 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The beginning of the attribution period generally shall be the date of hire. However, if the plan's benefit formula grants credit only for service from a later date and that credited service period is not nominal in relation to employees' total years of service before their full eligibility dates, the expected postretirement benefit obligation shall be attributed from the beginning of that credited service period. ##### [715-60-35-67](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-67) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c40466dfca8643f0f3daf73492faa9a0d42d185f4cc41f1252938ce534ad4960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a plan with a benefit formula that attributes benefits to a credited service period that is nominal in relation to employees' total years of service before their full eligibility dates, an equal amount of the expected postretirement benefit obligation for an employee is attributed to each year of that employee's service from date of hire to date of full eligibility for benefits. ##### [715-60-35-68](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-68) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c3f965448e1ad79a6290a9aa98baaa6de3458957b5a6856743f1b8c2a1fdf003 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In all cases, the end of the attribution period shall be the full eligibility date. For postretirement benefit plans that are pay-related or that otherwise index benefits during employees' service periods to their retirement date, the full eligibility date and retirement date may be the same. The attribution period for those benefits will differ from the attribution period for a similarly defined pension benefit with a capped credited service period. ##### [715-60-35-69](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-69) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:923e0b5a169d0ad9b623ace937c459831e843baa1056222ab9183678cfa99cb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Therefore, the present value of all of the benefits expected to be received by or on behalf of an employee is attributed to the employee's credited service period, which ends at the full eligibility date. ##### [715-60-35-70](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-70) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:50c026d07c317d08ae013c9aae0dc7ef80c0e9bb8ebc302231ef3860187036c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-57 through 55-59](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-57) , which illustrate the attribution provisions of this Subtopic, and paragraphs [715-60-55-10 through 55-18](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-10) for implementation guidance on attribution provisions. ##### [715-60-35-71](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-71) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7f3b9d620a7ea4a6b381adc56ed54f2b9bc263d8fa3d139e8cc4775b1fe4abd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Measuring the net periodic postretirement benefit cost and accumulated postretirement benefit obligation based on best estimates is superior to implying, by a failure to accrue, that no cost or obligation exists before the payment of benefits. This Subtopic requires the use of [explicit assumptions](https://asc.understandingaccounting.org/glossary/e/#explicit-approach-to-assumptions "An approach under which each significant assumption used reflects the best estimate of the plan's future experience solely with respect to that assumption. See Implicit Approach to Assumptions."), each of which individually represents the best estimate of a particular future event, to measure the expected postretirement benefit obligation. A portion of that expected postretirement benefit obligation is attributed to each period of an employee's service associated with earning the postretirement benefits, and that amount is accrued as service cost for that period. ##### [715-60-35-72](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-72) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:eb27e8769fd1be0896971eb8e6445fc724d6f600db8722384d83297348b11793 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The service cost component of postretirement benefit cost, any prior service cost, and the accumulated postretirement benefit obligation are measured using actuarial assumptions and present value techniques to calculate the actuarial present value of the expected future benefits attributed to periods of employee service. Each assumption used shall reflect the best estimate solely with respect to that individual assumption. All assumptions shall presume that the plan will continue in effect in the absence of evidence that it will not continue. ##### [715-60-35-73](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-73) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c0484bca4331d74e829050f10d6ddc8030a3e721acfaf79e8590a6e8a4f94136 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Principal actuarial assumptions include, but are not limited to, all of the following: 1. a The time value of money (discount rates) 2. b Participation rates (for [contributory plans](https://asc.understandingaccounting.org/glossary/c/#contributory-plan "A plan under which retirees or active employees contribute part of the cost. In some contributory plans, retirees or active employees wishing to be covered must contribute; in other contributory plans, participants' contributions result in increased benefits.")) 3. c Retirement age 4. d Salary progression (for pay-related plans) 5. e The probability of payment (turnover, [dependency status](https://asc.understandingaccounting.org/glossary/d/#dependency-status "The status of a current or former employee having dependents (for example, a spouse or other relatives) who are expected to receive benefits under a postretirement benefit plan that provides dependent coverage."), mortality, and so forth) 6. f Factors affecting the amount and timing of future benefit payments, which for postretirement health care benefits consider past and present [per capita claims cost by age](https://asc.understandingaccounting.org/glossary/p/#per-capita-claims-cost-by-age "The current cost of providing postretirement health care benefits for one year at each age from the youngest age to the oldest age at which plan participants are expected to receive benefits under the plan. See Assumed per Capita Claims Cost (By Age)."), health care cost trend rates, and [Medicare reimbursement rates](https://asc.understandingaccounting.org/glossary/m/#medicare-reimbursement-rates "The health care cost reimbursements expected to be received by retirees through Medicare as mandated by currently enacted legislation. Medicare reimbursement rates vary by the type of benefits provided."), and so forth. ##### [715-60-35-74](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-74) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:984ade2c9c59d7e5310042aea7afdba0c8c0c59b3799cad20b4d2c691dfeeaba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic also requires use of an assumption about the long-term rate of return on plan assets and a market-related value of plan assets to calculate the expected return on plan assets. ##### [715-60-35-75](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-75) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a5138f24835abc1a794523fe9edfbd97c30b6166aeb5b883dbfeccedf56b8fab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All assumptions shall be consistent to the extent that each reflects expectations about the same future economic conditions, such as future rates of inflation. Measuring service cost and the expected and accumulated postretirement benefit obligations based on estimated future compensation levels entails considering any indirect effects, such as benefit limitations, that would affect benefits provided by the plan. For example, a plan may define the maximum benefit to be provided under the plan (a fixed cap). In measuring the expected postretirement benefit obligation under that plan, the projected benefit payments would be limited to that cap. For a plan that automatically adjusts the maximum benefit to be provided under the plan for the effects of inflation (an adjustable cap), the expected postretirement benefit obligation would be measured based on adjustments to that cap consistent with the assumed inflation rate reflected in other inflation-related assumptions. ##### [715-60-35-76](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-76) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:42f2be19f13a32701e8a622344e87d89207e875bb994af2597a2c8c9cfbb71d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, assumed discount rates include an inflationary element that reflects the expected general rate of inflation. Assumed compensation levels include consideration of future changes attributable to general price levels. Similarly, assumed health care cost trend rates include an element that reflects expected general rates of inflation for the economy overall and an element that reflects price changes of health care costs in particular. To the extent that those assumptions consider similar inflationary effects, the assumptions about those effects shall be consistent. ##### [715-60-35-77](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-77) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0b65838e8c5b6bc19eb87162fb12bb180699ddb46b6fb5881adef50cc1142e2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many of the assumptions used in postretirement benefit measurements are similar to assumptions used in pension measurements, but the sensitivity of the measures to changes in the assumptions may be more significant. For example, the turnover assumption may have a more significant effect for postretirement benefits than for pension benefits because, in many cases, eligibility for postretirement benefits is an all-or-nothing proposition, while most pension plans provide reduced benefits for relatively short periods of service. The dependency status assumption also may have a more significant effect on postretirement benefit measurements than on pension measurements. Plan provisions that entitle an employee's spouse and other dependents to health care and other welfare benefits may substantially increase an employer's cost and obligation for postretirement benefits. ##### [715-60-35-78](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-78) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c03910d7a2f89c56675cf48c8d73c8cec95271645cfeceba1cd446c47bc48ada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Postretirement benefit measurements are more sensitive to assumptions about retirement ages and the probability of retiring at each age than are pension measurements. For example, employer-provided postretirement health care benefits are significantly more expensive before Medicare coverage begins than after. Many pension arrangements provide for an actuarially reduced pension benefit for employees retiring before the normal retirement age; however, for an employee retiring early, there typically is no reduction in the postretirement benefit levels, and those benefits will be paid over a longer period of time and at a higher annual cost to the employer than if the employee retired at the normal retirement age. Similarly, postretirement benefit measurements are more sensitive than pension measurements to the life expectancy assumption. In particular, health care benefits are sensitive to that assumption because health care costs generally increase with age. ##### [715-60-35-79](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-79) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9d84fd9932cd1b92bc76e9219eaaa786307d91c4d48b18ead985df0aca829768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assumed discount rates shall reflect the time value of money as of the measurement date in determining the present value of future cash outflows currently expected to be required to satisfy the postretirement benefit obligation. In making that assumption, employers shall look to rates of return on high-quality fixed-income investments currently available whose cash flows match the timing and amount of expected benefit payments. If settlement of the obligation with third-party insurers is possible (for example, the purchase of nonparticipating life insurance contracts to provide death benefits), the interest rates inherent in the amount at which the postretirement benefit obligation could be settled are relevant in determining the assumed discount rates. Assumed discount rates are used in measurements of the expected and accumulated postretirement benefit obligations and the service cost and interest cost components of net periodic postretirement benefit cost. ##### [715-60-35-80](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-80) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8e9e9c0dd84f9df96f1d00dc1df6b1f309b74a6f90bc165b955f7e74d74dda96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [715-60-35-79](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-79), an employer shall look to rates of return on high-quality fixed-income investments in determining assumed discount rates. The objective of selecting assumed discount rates using that method is to measure the single amount that, if invested at the measurement date in a portfolio of high-quality debt instruments, would provide the necessary future cash flows to pay the postretirement benefits when due. Notionally, that single amount, the accumulated postretirement benefit obligation, would equal the fair value of a portfolio of high-quality zero coupon bonds whose maturity dates and amounts would be the same as the timing and amount of the expected future benefit payments. Because cash inflows would equal cash outflows in timing and amount, there would be no reinvestment risk in the yields to maturity of the portfolio. ##### [715-60-35-81](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-81) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8fb1500864147adf41d650afe477b98423633ee09aa6083380b1810826da57b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, in other than a zero coupon portfolio, such as a portfolio of long-term debt instruments that pay semiannual interest payments or whose maturities do not extend far enough into the future to meet expected benefit payments, the assumed discount rates (the yield to maturity) need to incorporate expected reinvestment rates available in the future. Those rates shall be extrapolated from the existing yield curve at the measurement date. ##### [715-60-35-82](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-82) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1631dc4910b6768fa7aeab2454726507183a6dede7d7e15d1f44501b8ae6dbbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of the assumed discount rate is separate from the determination of the expected rate of return on plan assets whenever the actual portfolio differs from the hypothetical portfolio described in the preceding paragraph. Assumed discount rates shall be reevaluated at each measurement date. If the general level of interest rates rises or declines, the assumed discount rates shall change in a similar manner. ##### [715-60-35-83](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-83) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f4ac1898d8d3fb7069721818dc0b36c30f097766b73877c8e158c93777fb581a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [715-60-55-4](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-4) for implementation guidance on discount rates used to measure an employer's postretirement benefit obligation. ##### [715-60-35-84](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-84) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1efba3c174aa57b3a0bc3e5f1af007639b2714859a94f0ec6254a1a0d541dea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The expected long-term rate of return on plan assets shall reflect the average rate of earnings expected on the existing assets that qualify as plan assets and contributions to the plan expected to be made during the period. In estimating that rate, appropriate consideration shall be given to the returns being earned on the plan assets currently invested and the rates of return expected to be available for reinvestment. ##### [715-60-35-85](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-85) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:74f093f212b7ca76a2cf082e1d5b5e0b59311f7de794878cd4c18809cfa7fba3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unlike most pension plans, the return on postretirement benefit plan assets may be subject to income tax because of the lack of tax-exempt vehicles for funding those benefits. At present, even if postretirement benefit plan assets are restricted and segregated within a trust, the income generated by those assets generally is taxable. If the plan has taxable income, the assessed tax will reduce the returns available for payment of benefits or reinvestment. If the trust or other entity holding the plan assets is taxed as a separate entity on the return on plan assets, the expected long-term rate of return shall be determined by giving consideration to anticipated income taxes under enacted tax law. However, if the tax on income generated by plan assets is not a liability of the plan, but of the employer, the expected long-term rate of return shall not anticipate a tax on those earnings, because that tax will be reflected in the employer's accounting for income taxes (see Topic 740). ##### [715-60-35-86](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-86) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9209a98518d28b9c20ea08eae689ee0e6522621472dffce6917f2d6eb4fdf7b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Thus, if the return on plan assets is taxable to the trust or other fund under the plan, the expected long-term rate of return shall be reduced to reflect the related income taxes expected to be paid under existing law. ##### [715-60-35-87](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-87) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:06ef9e5d8bbdf1e69e07125b6454c3533e64855729162b0ab5249b70dea5ef59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The expected long-term rate of return on plan assets is used with the market-related value of plan assets to compute the expected return on plan assets. (See paragraph [715-60-35-26](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-26).) There is no assumption of an expected long-term rate of return on plan assets for plans that are unfunded or that have no assets that qualify as plan assets pursuant to this Subtopic. ##### [715-60-35-88](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-88) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d12e71b998d89df32206a0687ee8efaa7f09dc1e3fca11514cfc61afb44daa0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The service cost component of net periodic postretirement benefit cost and the expected and accumulated postretirement benefit obligations shall reflect future compensation levels to the extent the postretirement benefit formula defines the benefits wholly or partially as a function of future compensation levels. For such pay-related plans, assumed compensation levels shall reflect the best estimate of the actual future compensation levels of the individual employees involved, including future changes attributed to general price levels, productivity, seniority, promotion, and other factors. ##### [715-60-35-89](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-89) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:12959fd5aa7bb590cb5a4f86d4a7038331876b40b2be7fcbe7d95beec40a25ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For pay-related plans, salary progression is included in measuring the expected postretirement benefit obligation. For example, a postretirement health care plan may define the deductible amount or copayment, or a postretirement life insurance plan may define the amount of death benefit, based on the employee's average or final level of annual compensation. ##### [715-60-35-90](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-90) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:ed4026ccb9e5d8178eb90acbdb1bc19ab043ef1b0f7070399c16cfa04d2a2a11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Measurement of an employer's postretirement health care obligation requires the use of several assumptions unique to health care benefits. Most significantly, it includes making several assumptions about factors that will affect the amount and timing of future benefit payments for postretirement health care. Those factors include consideration of historical per capita claims cost by age, health care cost trend rates (for plans that provide a benefit in kind), and medical coverage to be paid by governmental authorities and other providers of health care benefits. Recent claims cost experience and the claims cost experience of other employers in the same industry or geographical location may provide useful information in developing the assumed per capita claims cost by age from the earliest age at which a plan participant could receive benefits under the plan to the longest life expectancy. Data files developed and maintained by insurers or benefits consultants about employers' claims costs for similar benefits programs and national or regional statistics about claims cost patterns also may provide information that may be used for developing the per capita claims cost by age. ##### [715-60-35-91](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-91) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:b387fc8006294e2e10b95fe95fd15e018caa69d9e5a34e3b9327619f6a1a1bac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In principle, an employer's share of the expected future postretirement health care cost for a plan participant is developed by reducing the assumed per capita claims cost at each age at which the plan participant is expected to receive benefits under the plan by both of the following: 1. a The effects of coverage by Medicare and other providers of health care benefits 2. b The effects of the cost-sharing provisions of the plan (deductibles, copayment provisions, out-of-pocket limitations, caps on the limits of the employer-provided payments, and retiree contributions). ##### [715-60-35-92](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-92) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:4af4f7a3c8928158a1f3a3ed68720e9e7d5d42a0e7be0b9bd02dc5831c49cbda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The resulting amount represents the [assumed net incurred claims cost](https://asc.understandingaccounting.org/glossary/a/#assumed-per-capita-claims-cost-by-age "The annual per capita cost, for periods after the measurement date, of providing the postretirement health care benefits covered by the plan from the earliest age at which an individual could begin to receive benefits under the plan through the remainder of the individual's life or the covered period, if shorter. To determine the assumed per capita claims cost, the per capita claims cost by age based on historical claims costs is adjusted for assumed health care cost trend rates. The resulting assumed per capita claims cost by age reflects expected future costs and is applied with the plan demographics to determine the amount and timing of future gross eligible charges. See Gross Eligible Charges and Per Capita Claims Cost (by Age).") at each age at which the plan participant is expected to receive benefits under the plan. If contributions are required to be paid by active plan participants toward their postretirement health care benefits, the actuarial present value of the plan participants' future contributions reduces the actuarial present value of the aggregate assumed net incurred claims costs. ##### [715-60-35-93](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-93) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:4602c03bfdc493eede5a51e3d476fbb93da06a1301f3de65947ff2b2265a697c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The assumed per capita claims cost shall be the best estimate of the expected future cost of the benefits covered by the plan. It may be appropriate to consider other factors in addition to age, such as sex and geographical location, in developing the assumed per capita claims cost. ##### [715-60-35-94](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-94) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:807804874f99cd597cc7cb731cba2a6d3dc3fb9fa181228eb60ffae6585ecfa8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Past and present claims data for the plan, such as a historical pattern of gross claims by age (claims curve), should be used in developing the current per capita claims cost to the extent that those data are considered to be indicative of the current cost of providing the benefits covered by the plan. Those current claims data shall be adjusted by the assumed health care cost trend rate. The resulting assumed per capita claims cost by age, together with the [plan demographics](https://asc.understandingaccounting.org/glossary/p/#plan-demographics "The characteristics of the plan population including geographical distribution, age, sex, and marital status."), determines the amount and timing of expected future [gross eligible charges](https://asc.understandingaccounting.org/glossary/g/#gross-eligible-charges "The cost of providing the postretirement health care benefits covered by the plan to a plan participant, before adjusting for expected reimbursements from Medicare and other providers of health care benefits and for the effects of the cost-sharing provisions of the plan."). ##### [715-60-35-95](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-95) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5f710fc88bbe187d168176771d4ee651ae3b01668b12c5126d88f45ff68accba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the absence of sufficiently reliable plan data about the current cost of the benefits covered by the plan, the current per capita claims cost should be based, entirely or in part, on the claims information of other employers to the extent those costs are indicative of the current cost of providing the benefits covered by the plan. For example, the current per capita claims cost may be based on the claims experience of other employers derived from information in data files developed by insurance entities, actuarial firms, or employee benefits consulting firms. The current per capita claims cost developed on those bases shall be adjusted to best reflect the terms of the employer's plan and the plan demographics. For example, the information should be adjusted, as necessary, for differing demographics, such as the age and sex of plan participants, health care utilization patterns by men and women at various ages, and the expected geographical location of retirees and their dependents, and for significant differences between the nature and types of benefits covered by the employer's plan and those encompassed by the underlying data. ##### [715-60-35-96](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-96) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8665777cc7e0d18b6b28d47438a596c72007e8a6ee46373e04d048b166f58471 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a plan that stipulates that the benefit to be provided is the payment of certain health insurance premiums for retirees rather than the payment of their health care claims, the employer shall project the cost of those future premiums in measuring its benefit obligation. That projection requires an assessment of how future health care costs will affect future premiums. ##### [715-60-35-97](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-97) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0c233c27a1d84a3b92c8c01785d32b42dc7d8c42019b6dc476eb88fe98d8770b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, retiree contributions are established based on the average per capita cost of benefit coverage under an employer's health care plan that provides coverage to both active employees and retirees. However, the medical cost of the retirees may cause the average per capita cost of benefit coverage under the plan to be higher than it would be if only active employees were covered by the plan. In that case, the employer has a postretirement benefit obligation for the portion of the expected future cost of the retiree health care benefits that are not recovered through retiree contributions, Medicare, or other providers of health care benefits. ##### [715-60-35-98](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-98) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1e092a4e55c8d990c45c6ad906b2342dd3941f95b1545bc6eec1b2e61a083f28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, the internal and external costs directly associated with administering the postretirement benefit plan also shall be accrued as a component of assumed per capita claims cost. ##### [715-60-35-99](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-99) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:09fd91bd2aeb6d9e5a6160724b36d2b3a5ab0a7f20e07858424611042eac14bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The assumption about health care cost trend rates represents the expected annual rates of change in the cost of health care benefits currently provided by the postretirement benefit plan, due to factors other than changes in the demographics of the plan participants, for each year from the measurement date until the end of the period in which benefits are expected to be paid. Past and current health care cost trends shall be used in developing an employer's assumed health care cost trend rates, which implicitly consider estimates of health care inflation, changes in health care utilization or delivery patterns, technological advances, and changes in the health status of plan participants. ##### [715-60-35-100](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-100) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0ddc672d77c73a699f1625e299beaf5f9a754f3694dedcde88482862e8529577 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Differing services, such as hospital care and dental care, may require the use of different health care cost trend rates. It is appropriate for that assumption to reflect changes in health care cost trend rates over time. For example, the health care cost trend rates may be assumed to continue at the present level for the near term, or increase for a period of time, and then grade down over time to an estimated health care cost trend rate ultimately expected to prevail. ##### [715-60-35-101](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-101) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:257f5d5f5664692a1eb69eac01da93614469dce7ceba42b5d0b46208ac9376fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An assumption about changes in the health status of plan participants considers, for example, the probability that certain claims costs will be incurred based on expectations of future events, such as the likelihood that some retirees will incur claims requiring technology currently being developed or that historical claims experience for certain medical needs may be reduced as a result of participation in a wellness program. ##### [715-60-35-102](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-102) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fbb8098c4ad825409be35b56d0e40f943217cc84ee322e3390316ac5d06c2c8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain medical claims may be covered by governmental programs under existing law or by other providers of health care benefits. Benefit coverage by those governmental programs shall be assumed to continue as provided by the present law and by other providers pursuant to their present plans. Presently enacted changes in the law or amendments of the plans of other health care providers that take effect in future periods and that will affect the future level of their benefit coverage shall be considered in current-period measurements for benefits expected to be provided in those future periods. Future changes in laws concerning medical costs covered by governmental programs and future changes in the plans of other providers shall not be anticipated. ##### [715-60-35-103](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-103) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c25174d3c6304850aea387b6d2a409286aae6d726c12540529fca800ca1ebbf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As an example of another provider of health care benefits, a retiree's spouse also may be covered by the spouse's present (or former) employer's health care plan. In that case, the spouse's employer (or former employer) may provide either primary or secondary postretirement health care benefits to the retiree's spouse or dependents. ##### [715-60-35-104](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-104) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:b99e1a1e89bafbd138075194198024abd0e81271389f94f7a5f3dbf653912e9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, determining the assumed per capita claims cost by age as described in paragraphs [715-60-35-93 through 35-95](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-93) may not be practical because credible historical information about the gross per capita cost of covered benefits may not be available or determinable to satisfy the stated measurement approach. However, credible historical information about incurred claims costs may be available. In those cases, an alternative method of developing the assumed per capita claims cost may be used provided the method results in a measure that is the best estimate of the expected future cost of the benefits covered by the plan. For example, the assumed health care cost trend rates may be determined by adjusting the expected change in the employer's share of per capita incurred claims cost by age by a factor that reflects the effects of the plan's cost-sharing provisions. However, an approach that projects [net incurred claims costs](https://asc.understandingaccounting.org/glossary/n/#net-incurred-claims-cost-by-age "The employer's share of the cost of providing the postretirement health care benefits covered by the plan to a plan participant; incurred claims cost net of retiree contributions. See Incurred Claims Cost (by Age).") using unadjusted assumed health care cost trend rates would implicitly assume changes in the plan's cost-sharing provisions at those assumed rates and, therefore, is not acceptable unless the plan's cost-sharing provisions are indexed in that manner or the substantive plan (see paragraphs [715-60-35-48 through 35-56](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-48) ) operates in that manner. ##### [715-60-35-105](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-105) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:4a990a441daf5e6632d75dffd27dbd9efb237c4e818221b045549638394d8438 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-5 through 55-9](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-5) for implementation guidance on assumed per capita health care costs. #### Measurement of Plan Assets ##### [715-60-35-106](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-106) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:014f32fe3cd48e6c4f8c29886f49b867f1d5e50c9ca61717cd2d224d56b8ea09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For recognition guidance on the funded statuses of other postretirement benefit plans, see paragraph [715-60-25-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-1). ##### [715-60-35-107](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-107) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fd1e39712c09e1adac5051638136e3ab7dae753d237b93cdbba41e0b70beebb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of the disclosures required by paragraph [715-20-50-1](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) and paragraph [715-20-50-5](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-5), plan investments, whether [equity](https://asc.understandingaccounting.org/glossary/e/#equity-security "Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. However, the term does not include convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor.") or [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."), real estate, or other, shall be measured at their fair value as of the measurement date. (See paragraph [715-60-35-120](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-120).) The fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale if those costs are significant (similar to fair value less cost to sell). Plan assets used in plan operations (for example, buildings, equipment, furniture and fixtures, and leasehold improvements) shall be measured at cost less accumulated depreciation or amortization for all purposes. ##### [715-60-35-108](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-108) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f71e72edb66f263627b691760936d25b20729a374122056716c769de1eb481ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [715-60-55-26 through 55-28](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-26) for implementation guidance on plan assets. #### Insurance Contracts ##### [715-60-35-109](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-109) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1597b9fe01a0959371976fa0f785cb7f535b603b5ad445b4a8fc2ad5d4239af9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits covered by insurance contracts shall be excluded from the accumulated postretirement benefit obligation. Insurance contracts shall be excluded from plan assets, except as provided in paragraphs [715-60-25-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-3) and [715-60-35-115 through 35-116](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-115) for the cost of participation rights. ##### [715-60-35-110](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-110) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8da68101a9e8176660a3186060c12536104e48eadf51b30548888c299df732e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the insurance entity providing the contract does business primarily with the employer and related parties (a [captive insurer](https://asc.understandingaccounting.org/glossary/c/#captive-insurer "An insurance entity that does business primarily with related entities.")) or if there is any reasonable doubt that the insurance entity will meet its obligations under the contract, the contract is not an [insurance contract](https://asc.understandingaccounting.org/glossary/i/#insurance-contract "A contract in which an insurance entity unconditionally undertakes a legal obligation to provide specified benefits to specific individuals in return for a fixed consideration or premium. An insurance contract is irrevocable and involves the transfer of significant risk from the employer (or the plan) to the insurance entity.") for purposes of this Subtopic. ##### [715-60-35-111](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-111) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:31382a61cf6ab05493caf03e2902cfa1347a096ceb2d57784f7d0573cf1cfbe5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance contract with a captive insurer generally does not qualify as a [plan asset](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") unless it meets the criteria in the definition of the term plan assets. To qualify as a plan asset, an investment contract with a captive insurer shall be segregated and restricted for the payment of postretirement benefits. Note that whether a funding vehicle can be restricted solely for the payment of retirees' benefits is subject to legal, not accounting, interpretation. ##### [715-60-35-112](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-112) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:b8cbb5015cfa6885d50ba4463d9cf0b0b8e0b3f80fa7c0be05e3a365982fd8bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, because a plan's investment contract with a captive insurance entity represents an obligation of the employer to pay cash to be used to pay benefits and because amounts accrued by the employer to pay benefits are not plan assets, that contract shall be considered an employer debt security for purposes of this Subtopic and, therefore, must be currently transferable to be included in plan assets. (See paragraphs [715-60-55-26 through 55-28](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-26) for guidance on employer entities.) ##### [715-60-35-113](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-113) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e3bcab75bac5ea1c108b38df606bec792ded1d40540979e1b3b1e0ce3bf382f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-15-16 through 15-19](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-16) for a description of investment contracts. ##### [715-60-35-114](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-114) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:3119bf0a2eb617c999655e1bf88f4bd2b974fc7041cefb42187e407fc22d7d06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some insurance contracts (participating insurance contracts) provide that the purchaser (either the plan or the employer) may participate in the experience of the insurance entity. Under those contracts, if the insurance entity has favorable experience, the insurance entity will pay dividends to the purchaser, the effect of which is to reduce the cost of the plan. For example, if the insurance entity's investment return is better than anticipated, or perhaps if actual experience related to mortality or other assumptions is favorable, the purchaser will receive dividends that reduce the cost of the contract. ##### [715-60-35-115](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-115) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:34c7ac1b988bae6061decc4e7b060b6e867a137955dd9d4f9213a4f171d01fb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purchase price of a [participating insurance](https://asc.understandingaccounting.org/glossary/p/#participating-insurance "Insurance in which the policyholder is entitled to participate in the earnings or surplus of the insurance entity. The participation occurs through the distribution of dividends to policyholders.") contract ordinarily is higher than the price of an equivalent contract without a [participation right](https://asc.understandingaccounting.org/glossary/p/#participation-right "A purchaser's right under a participating insurance contract to receive future dividends or retroactive rate credits from the insurance entity."). The difference is the cost of the participation right. ##### [715-60-35-116](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-116) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:62df7e2109b76e46ced3ab01797df39129fd1a3dc3fa71c77d051180de959583 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In subsequent periods, the participation right shall be measured at its fair value if the contract is such that fair value is reasonably estimable. Otherwise the participation right shall be measured at its amortized cost (not in excess of its net realizable value), and the cost shall be amortized systematically over the expected dividend period under the contract. ##### [715-60-35-117](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-117) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5429f289c67b03ee5c46ccec4e5c1b2f5390a53cb6fc42579fe9939d070eb404 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the participating insurance contract causes the employer to remain subject to all or most of the risks and rewards associated with the benefit obligation covered or the assets transferred to the insurance entity, that contract is not an insurance contract for purposes of this Subtopic, and the purchase of that contract does not constitute a settlement pursuant to paragraphs [715-60-35-150 through 35-155](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) and [715-60-35-157 through 35-159](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-157) . ##### [715-60-35-118](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-118) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:4933fbebe21efcb37aadeae60bb1382181cabf080d17dd2b84a242c191cdc4a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent that insurance contracts are purchased during the period to cover postretirement benefits attributed to service in the current period (such as life insurance benefits), the cost of those benefits shall be the cost of purchasing the coverage under the contracts, except as provided in paragraphs [715-60-25-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-3) and [715-60-35-115 through 35-116](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-115) for the cost of a participation right. If all the postretirement benefits attributed to service in the current period are covered by [nonparticipating insurance contracts](https://asc.understandingaccounting.org/glossary/n/#nonparticipating-insurance-contract "An insurance contract that does not provide for the purchaser to participate in the investment performance or in other experience of the insurance entity. See Insurance Contract.") purchased during that period, the cost of the contracts determines the service cost component of net postretirement benefit cost for that period. ##### [715-60-35-119](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-119) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1c7e900ff00b3e440048ec1d55951181bd995ba596efdf378697e8886fd1626d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits attributed to current service in excess of benefits provided by nonparticipating insurance contracts purchased during the current period shall be accounted for according to the provisions of this Subtopic applicable to plans not involving insurance contracts. ##### [715-60-35-120](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-120) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:75faf62e44b664519fdfa7cb78b1f3cba38c9906b52d90bba5b5fbda3dbcb2ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other contracts with insurance entities may not meet the definition of an insurance contract because the insurance entity does not unconditionally undertake a legal obligation to provide specified benefits to specified individuals. Those contracts shall be accounted for as investments and measured at fair value. If a contract has a determinable cash surrender value or conversion value, that is presumed to be its fair value. For some contracts, the best available estimate of fair value may be contract value. #### Timing of Measurement ##### [715-60-35-121](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-121) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8a31a39755952bf4cbb0c347d8a95e60ba94643c1323f31349290bba645c0c76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurements of plan assets and benefit obligations required by this Subtopic shall be as of the date of the employer's fiscal year-end statement of financial position, unless either of the following conditions applies: 1. a The plan is sponsored by a subsidiary that is consolidated using a fiscal period that differs from its parent's, as permitted by paragraph [810-10-45-12](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-12). 2. b The plan is sponsored by an investee that is accounted for using the equity method of accounting under Subtopic 323-10, using financial statements of the investee for a fiscal period that is different from the investor's, as permitted by paragraph [323-10-35-6](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-6). ##### [715-60-35-122](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-122) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:da7dd370d004807ae2b0fab5bac50e1c431efe01c17ae9ebfa0df85e3d2fae30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In those cases, the employer shall measure the subsidiary's plan assets and benefit obligations as of the date used to consolidate the subsidiary's statement of financial position and shall measure the investee's plan assets and benefit obligations as of the date of the investee's financial statements used to apply the equity method. ##### [715-60-35-123](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-123) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d4dd476dad7048855b2e1f866628f818f97a75b1d0f7a1cb2cdb5cd62f355a86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if a calendar year-end parent consolidates a subsidiary using the subsidiary's September 30 financial statements, the funded status of the subsidiary's benefit plan included in the consolidated financial statements shall be measured as of September 30. ##### [715-60-35-123A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-123A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1ab8c3a12843f0918ac6bd58643f70f46aab4adb7c1e4660783b8d873a457021 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an employer's fiscal year-end does not coincide with a month-end, the employer may measure plan assets and benefit obligations using the month-end that is closest to the employer's fiscal year-end. That election shall be applied consistently from year to year. The practical expedient shall be applied consistently to all of its defined benefit plans if an employer has more than one defined benefit plan. ##### [715-60-35-123B](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-123B) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7237d25dc7b26a39fb8ac8dfbc1e312456d1489b89188da0ca1e5eb4e09b70c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an employer measures plan assets and benefit obligations in accordance with paragraph [715-60-35-123A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-123A) and a contribution or significant event caused by the employer (such as a plan amendment, settlement, or curtailment that calls for a remeasurement) occurs between the month-end date used to measure plan assets and benefit obligations and the employer's fiscal year-end, the employer shall adjust the fair value of plan assets and the actuarial present value of benefit obligations so those contributions or significant events are recognized in the period in which they occurred. An employer should not adjust the fair value of plan assets and the actuarial present value of benefit obligations for other events occurring between the month-end date used to measure plan assets and benefit obligations and the employer's fiscal year-end that may be significant to the measurement of defined benefit plan assets and obligations, but are not caused by the employer (for example, changes in market prices or interest rates). ##### [715-60-35-124](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-124) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:27abc171c9aa65718b21a89c1d1d89187631cf00576bc6ff42ab71fc3ab4b898 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even though the postretirement benefit measurements are required as of a particular date, all procedures are not required to be performed after that date. As with other financial statement items requiring estimates, much of the information can be prepared as of an earlier date and projected forward to account for subsequent events (for example, employee service). ##### [715-60-35-125](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-125) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f161a793d8bb8e6ad9d62b431e831226980c0968c36d2a8869191d795bb2980d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Measurements of net periodic postretirement benefit cost for both interim and annual financial statements generally shall be based on the assumptions at the beginning of the year (assumptions used for the previous year-end measurements of plan assets and obligations) unless more recent measurements of both plan assets and the accumulated postretirement benefit obligation are available. ##### [715-60-35-126](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-126) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:094e9fb907edff283652ee23b26139a7e9e724e5eca5a0a1402a477262b950dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if a significant event occurs, such as a plan amendment, settlement, or curtailment, that ordinarily would call for remeasurement, the assumptions used for those later measurements shall be used to remeasure net periodic postretirement benefit cost from the date of the event to the year-end measurement date. ##### [715-60-35-126A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-126A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:2096062c2e67ea22dc812654b5599e76e19f945b3757ad4e1d6f25beb0e78fd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a significant event caused by the employer (such as a plan amendment, settlement, or curtailment) that requires an employer to remeasure both plan assets and benefit obligations does not coincide with a month-end, the employer may elect to remeasure plan assets and benefit obligations using the month-end that is closest to the date of the significant event. ##### [715-60-35-126B](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-126B) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:277a070bbf01147093c7e6ceb3c5760f81565ad384633fd1341ca2ffbdcca304 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an employer remeasures plan assets and benefit obligations during the fiscal year in accordance with paragraph [715-60-35-126A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-126A), the employer shall adjust the fair value of plan assets and the actuarial present value of benefit obligations for any effects of the significant event that may or may not be captured in the month-end measurement (for example, if the closest month-end is before the date of a partial settlement, then the measurement of plan assets may include assets that are no longer part of the plan). An employer shall not adjust the fair value of plan assets and the actuarial present value of benefit obligations for other events occurring between the month-end date used to measure plan assets and benefit obligations and the employer's fiscal year-end that may be significant to the measurement of defined benefit plan assets and obligations, but are not caused by the employer (for example, changes in market prices or interest rates). ##### [715-60-35-127](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-127) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0cd34b20bde23c1c50da6896b7155161f521ece950cbf956de2d1a7a06c54e7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unless an employer remeasures both its plan assets and benefit obligations during the fiscal year, the funded status it reports in its interim-period statement of financial position shall be the same asset or liability recognized in the previous year-end statement of financial position adjusted for subsequent accruals of net periodic postretirement benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and contributions to a funded plan, or benefit payments. #### Employers with Two or More Plans ##### [715-60-35-128](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-128) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e714620bc4ef35a0f67982d992f07c6de767a360ebb864ad327cc2b3a0c28984 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer may have separate medical care, dental care, and eye care plans that provide benefit coverage to all retirees of the entity. Similarly, an employer may combine two or more unfunded plans that provide the same benefits to different groups of plan participants. For example, an employer may have identical postretirement medical care plans at each of its operating locations. This Subtopic permits combining plans in those situations because the differences in the plans are not substantive. Combining information in those cases results in combined measurements for accounting and disclosure purposes. ##### [715-60-35-128A](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-128A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:6aed5ef2199cca310922c1e324d689f7392d59446747ee9ef5bac266f7639c52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As required by paragraph [715-60-25-2](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-2), upon remeasurement, a business entity shall adjust its statement of financial position in a subsequent interim period to reflect the overfunded or underfunded status of the plan consistent with that measurement date. ##### [715-60-35-129](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-129) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f0a63e0c61d7ae525b341e0ba38f0a07ca2c3f540e61bee696913c8897574526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Postretirement benefits offered by an employer may vary in nature and may be provided to different groups of employees. As discussed in the following paragraph, in some cases an employer may aggregate data from unfunded plans for measurement purposes in lieu of performing separate measurements for each unfunded plan (including plans whose designated assets are not appropriately segregated and restricted and thus have no plan assets as that term is used in this Subtopic). Net periodic postretirement benefit cost, the accumulated postretirement benefit obligation, and plan assets shall be determined for each separately measured plan or aggregation of plans by applying the provisions of this Subtopic to each such plan or aggregation of plans. ##### [715-60-35-130](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-130) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:98df6ab2985718353fa3d82d88e26f44a5ae2baae93946f27411d914d9aa1ab3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The data from all unfunded postretirement health care plans may be aggregated for measurement purposes if those plans provide different benefits to the same group of employees or those plans provide the same benefits to different groups of employees. Data from other unfunded postretirement welfare benefit plans may be aggregated for measurement purposes in similar circumstances, such as when an employer has a variety of welfare benefit plans that provide benefits to the same group of employees. However, a plan that has plan assets (as defined herein) shall not be aggregated with other plans but shall be measured separately. #### Multiple-Employer Plans ##### [715-60-35-131](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-131) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:efae2c9f08a4510dfcff21ede4b7d6c55fa3e36287e0ba317e3626e461ca1a66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some postretirement benefit plans to which two or more unrelated employers contribute are not multiemployer plans. Rather, those [multiple-employer plans](https://asc.understandingaccounting.org/glossary/m/#multiple-employer-plan "A pension plan or other postretirement benefit plan maintained by more than one employer but not treated as a multiemployer plan. Multiple-employer plans are generally not collectively bargained and are intended to allow participating employers, commonly in the same industry, to pool their plan assets for investment purposes and to reduce the cost of plan administration. A multiple-employer plan maintains separate accounts for each employer so that contributions provide benefits only for employees of the contributing employer. Multiple-employer plans may have features that allow participating employers to have different benefit formulas, with the employer's contributions to the plan based on the benefit formula selected by the employer.") are in substance aggregations of single-employer plans, combined to allow participating employers to pool plan assets for investment purposes or to reduce the costs of plan administration. Those plans ordinarily do not involve collective-bargaining agreements. They may also have features that allow participating employers to have different benefit formulas, with the employer's contributions to the plan based on the benefit formula selected by the employer. Those plans shall be considered single-employer plans rather than multiemployer plans for purposes of this Subtopic, and each employer's accounting shall be based on its respective interest in the plan. #### Transfer of Excess Pension Assets to a Retiree Health Care Benefits Account ##### [715-60-35-132](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-132) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:514eca128c017c8ec70cacd95bb0c629e5857ce1aec94780822f6453ea906498 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [715-30-35-73](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-73). ### Medicare Prescription Drug, Improvement, and Modernization Act ##### [715-60-35-133](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-133) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:bd474269d694b185bb58b743783ee96ac378025c45350c214f88928ea8cc59a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in coverage provided by governmental programs (see paragraph [715-60-35-102](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-102)) shall be considered in the period that the law is changed. However, the Medicare Prescription Drug, Improvement, and Modernization Act introduces the following two new features to Medicare that an employer needs to consider in determining those measurements: 1. a A subsidy that is based on 28 percent of an individual beneficiary's annual prescription drug costs between $250 and $5,000 (subject to indexation and the provisions of the Act as to allowable retiree costs) 2. b The opportunity for a retiree to obtain a prescription drug benefit under Medicare. ##### [715-60-35-134](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-134) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a457c79ed57df562e1153e1b5bfb155610be9c88c5b047a244b7253aef02c3a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of the impact of the subsidy, the existence of prescription drug coverage under Medicare Part D may have an effect on an employer's per capita claims cost for a [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") that currently provides a prescription drug benefit. That effect depends on whether current and future [retirees](https://asc.understandingaccounting.org/glossary/r/#retirees "Collectively, that group of plan participants that includes retired employees, their beneficiaries, and covered dependents.") (or their beneficiaries under the employer-sponsored plan) enroll in the voluntary Medicare Part D plan and on the Act's macrosocioeconomic effects on health care cost trends and consumers' behavior. ##### [715-60-35-135](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-135) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:cb2f83159c8171f455573e1bf6958b545dcfa010ae9047d1b7114f341aa06ac6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In response to the Act, or for other reasons, an employer may amend an existing plan (or establish a new one). To the extent that an employer amends a plan (positively or negatively), the [accumulated postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/a/#accumulated-postretirement-benefit-obligation "The actuarial present value as of a particular date of all future benefits attributed to an employee's service rendered to that date assuming the plan continues in effect and that all assumptions about future events are fulfilled. The accumulated postretirement benefit obligation generally reflects a ratable allocation of expected future benefits to employee service already rendered in the attribution period. Before an employee's full eligibility date, the accumulated postretirement benefit obligation as of a particular date for an employee is the portion of the expected postretirement benefit obligation attributed to that employee's service rendered to that date; on and after the full eligibility date, the accumulated and expected postretirement benefit obligations for an employee are the same.") will be affected by the direct effects of the change in [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") attributed to employee services already rendered. If an amendment changes the determination as to the actuarial equivalency of benefits available under the plan, the expected subsidy to the employer also will change. ##### [715-60-35-136](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-136) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a5e564af17bbe2c9a53011a18acd829902724c85dd0e60a55ba7ddf8b98c8c71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Therefore, under that guidance, measures of the accumulated postretirement benefit obligation and net periodic other postretirement benefit cost on or after the date of enactment shall reflect the effects of the Act. ##### [715-60-35-137](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-137) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f3ca87cf068c2949a55fe55f2ac38dea2658039869e34482a62d95deb7a14e5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an employer initially accounts for the subsidy its effect on the accumulated postretirement benefit obligation shall be accounted for as an actuarial experience gain pursuant to paragraphs [715-60-35-23](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23) and [715-60-35-29 through 35-33](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-29) . ##### [715-60-35-138](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-138) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:48edb2b2f088499c82bff7c78b89bcf774d4536e044a68c7514fe0aa66dd119f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the subsidy affects the employer's share of its plan's costs, the subsidy is included in measuring the costs of benefits attributable to current service. Therefore, the subsidy reduces service cost when it is recognized as a component of net periodic other postretirement benefit cost. ##### [715-60-35-139](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-139) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:3ba9459684ec01e088e46bf2e63a49dd40c6b694315cc791c1fef7a5f8e56d96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an estimate of the expected subsidy subsequently changes—as a result of changes in regulations or legislation, changes in the underlying estimates of other postretirement prescription drug costs, or for reasons other than a [plan amendment](https://asc.understandingaccounting.org/glossary/p/#plan-amendment "A change in the existing terms of a plan or the initiation of a new plan. A plan amendment may increase benefits (a positive plan amendment), or reduce or eliminate benefits (a negative plan amendment), including those benefits attributed to years of service already rendered.")—the effect of the change in estimate is an actuarial experience [gain or loss](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss "A change in the value of either the benefit obligation (projected benefit obligation for pension plans or accumulated postretirement benefit obligation for other postretirement benefit plans) or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the other postretirement benefit substantive plan. Gains or losses that are not recognized in net periodic pension cost or net periodic postretirement benefit cost when they arise are recognized in other comprehensive income. Those gains or losses are subsequently recognized as a component of net periodic pension cost or net periodic postretirement benefit cost based on the recognition and amortization provisions of Subtopic 715-30 or Subtopic 715-60.") pursuant to paragraph [715-60-35-23](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23). ##### [715-60-35-140](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-140) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:c3919e29858abcfe099695dd2c1c026ec404fcce7a072f301a3fa0abe0d5baf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If prescription drug benefits currently available under an existing plan are deemed not actuarially equivalent as of the date of enactment of the Act, but the plan is subsequently amended to provide actuarially equivalent benefits, the direct effect of the plan amendment on the accumulated postretirement benefit obligation (that is, the effect of only the change in prescription drug coverage) and the effect on the accumulated postretirement benefit obligation from any resulting subsidy to which the employer is expected to be entitled as a result of the amendment shall be combined. If that combined effect reduces the accumulated postretirement benefit obligation, it is deemed to be an actuarial experience gain pursuant to paragraph [715-60-35-23](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23). If the combined effect increases the accumulated postretirement benefit obligation, it is deemed to be [prior service cost](https://asc.understandingaccounting.org/glossary/p/#prior-service-cost "The cost of retroactive benefits granted in a plan amendment. Retroactive benefits are benefits granted in a plan amendment (or initiation) that are attributed by the benefit formula to employee services rendered in periods before the amendment.") that shall be accounted for pursuant to paragraphs [715-60-35-13 through 35-19](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-13) . ##### [715-60-35-141](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-141) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:8757cf6ab1ad62f79d7f8b6669cfad32456aa37aaebadb9923694a3d2f082276 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan that provides prescription drug benefits that previously were deemed actuarially equivalent under the Act may be subsequently amended to reduce its prescription drug coverage and that reduced coverage may not be considered actuarially equivalent. In that circumstance, any actuarial experience gain related to the subsidy previously recognized is unaffected. However, the combined net effect on the accumulated postretirement benefit obligation of the subsequent plan amendment that reduces benefits under the plan and thus disqualifies the benefits as actuarially equivalent and the elimination of the subsidy shall be accounted for as prior service cost (credit) as of the date the amendment is adopted. ##### [715-60-35-142](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-142) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7e9ec2ab5955fa9df88a91df2ad064fe14c5c24dcf9b24d64a751b2ea4de584b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When first determining the effects of the Act, an employer and its actuarial consultants may have been unable to determine the extent to which the benefits provided by a plan are actuarially equivalent as of the date of the initial measurement applying the guidance in the Medicare Prescription Drug, Improvement, and Modernization Act Subsections. ##### [715-60-35-143](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-143) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a3f4cdf71035ab346208ebcba27f57fc3e04e85dd161a6e0b358c3b90552efb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If additional clarifying regulations related to the Act or new information about the interpretation or determination of actuarial equivalency under the Act becomes available, the employer shall reconsider whether the benefits provided under its plan, as presently constructed, are actuarially equivalent. If that reconsideration results in a conclusion that benefits provided by the plan are actuarially equivalent (or that additional benefits provided by the plan are actuarially equivalent in the case of a plan under which an employer previously had determined that some benefits were actuarially equivalent), that conclusion could be a significant event pursuant to paragraphs [715-60-35-125 through 35-128](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-125) . ##### [715-60-35-144](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-144) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:74611982d2fda73c35263bcb949aaca349111c400840118bd5bedffe53157aff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, the guidance in the preceding paragraph does not apply if a plan amendment is the event that gives rise to the employer's reconsideration of actuarial equivalency. The guidance in paragraphs [715-60-35-140 through 35-141](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-140) applies to plan amendments. ##### [715-60-35-145](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-145) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a2878dc0c4ba4d866b5ba08f2220375deee3546e979ae9470c8615668bd5e99c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the effects of the subsidy on the plan are significant, a measurement of [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") and obligations shall be performed as of the date that actuarial equivalency is determined. ##### [715-60-35-146](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-146) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d6e4a6284037bcb6fefbe2c1f51e17b6bee470e911f58e2575b63b52c68a5d33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any effect on the accumulated postretirement benefit obligation due to the subsidy shall be reflected as an actuarial gain consistent with the guidance in paragraph [715-60-35-137](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-137). ##### [715-60-35-147](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-147) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:5ec2c50443202280b215a82b454ced518c5da204324b8509f10185c2a724d1fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Measures of [net periodic postretirement benefit cost](https://asc.understandingaccounting.org/glossary/n/#net-periodic-postretirement-benefit-cost "The amount recognized in an employer's financial statements as the cost of a postretirement benefit plan for a period. Components of net periodic postretirement benefit cost include service cost, interest cost, actual return on plan assets, gain or loss, amortization of prior service cost or credit, and amortization of the transition obligation or asset.") for subsequent periods would reflect the effects of those measurements. ##### [715-60-35-148](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-148) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fa2f23b6f6ac45a60fa18b3962cfb91ff6512cc077c3407ac2af9c0eb7a673a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prior financial statements shall not be retroactively adjusted nor shall a cumulative effect for prior periods be recognized in income. ### Settlements, Curtailments, and Certain Termination Benefits ##### [715-60-35-149](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-149) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:ccaea95cae6b9ea8061fe433a6d89807fa93fbfe072d68df04325ec02286de80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides for delayed recognition in [net periodic postretirement benefit cost](https://asc.understandingaccounting.org/glossary/n/#net-periodic-postretirement-benefit-cost "The amount recognized in an employer's financial statements as the cost of a postretirement benefit plan for a period. Components of net periodic postretirement benefit cost include service cost, interest cost, actual return on plan assets, gain or loss, amortization of prior service cost or credit, and amortization of the transition obligation or asset.") of the effects of a [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") initiation or a [plan amendment](https://asc.understandingaccounting.org/glossary/p/#plan-amendment "A change in the existing terms of a plan or the initiation of a new plan. A plan amendment may increase benefits (a positive plan amendment), or reduce or eliminate benefits (a negative plan amendment), including those benefits attributed to years of service already rendered."), the [transition obligation](https://asc.understandingaccounting.org/glossary/t/#transition-obligation "The amount, as of the date Subtopic 715-60 was initially applied, of the accumulated postretirement benefit obligation in excess of the fair value of plan assets plus any recognized accrued postretirement benefit cost or less any recognized prepaid postretirement benefit cost.") or [transition asset](https://asc.understandingaccounting.org/glossary/t/#transition-asset "The amount, as of the date Subtopic 715-60 was initially applied, of the fair value of plan assets plus any recognized accrued postretirement benefit cost or less any recognized prepaid postretirement benefit cost in excess of the accumulated postretirement benefit obligation."), and gains or losses arising in the ordinary course of operations. That is, generally, those amounts are recognized in other comprehensive income with subsequent [amortization](https://asc.understandingaccounting.org/glossary/a/#amortization "The process of reducing a recognized liability systematically by recognizing gains or by reducing a recognized asset systematically by recognizing losses. In accounting for pension benefits or other postretirement benefits, amortization also means the systematic recognition in net periodic pension cost or other postretirement benefit cost over several periods of amounts previously recognized in other comprehensive income, that is, gains or losses, prior service cost or credits, and any transition obligation or asset.") in net periodic postretirement benefit cost. However, in certain circumstances, as discussed in these Subsections, recognition in net periodic postretirement benefit cost of some or all of those amounts initially recognized in other comprehensive income is appropriate. #### Remeasurement of Cost Due to Settlements ##### [715-60-35-150](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:82317ba5a3e700a641b240dee6c83cfc3af6b7b8807c153eba2667ac16fc1b92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Settlements](https://asc.understandingaccounting.org/glossary/s/#settlement-of-a-pension-or-postretirement-benefit-obligation "A transaction that is an irrevocable action, relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and eliminates significant risks related to the obligation and the assets used to effect the settlement.") are events that may require income or expense recognition of certain amounts initially recognized in other comprehensive income and adjustments to liabilities or assets recognized in the employer's statement of financial position. The settlement of all or part of the [accumulated postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/a/#accumulated-postretirement-benefit-obligation "The actuarial present value as of a particular date of all future benefits attributed to an employee's service rendered to that date assuming the plan continues in effect and that all assumptions about future events are fulfilled. The accumulated postretirement benefit obligation generally reflects a ratable allocation of expected future benefits to employee service already rendered in the attribution period. Before an employee's full eligibility date, the accumulated postretirement benefit obligation as of a particular date for an employee is the portion of the expected postretirement benefit obligation attributed to that employee's service rendered to that date; on and after the full eligibility date, the accumulated and expected postretirement benefit obligations for an employee are the same.") is an event that requires recognition in income of all or part of a net [gain or loss](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss "A change in the value of either the benefit obligation (projected benefit obligation for pension plans or accumulated postretirement benefit obligation for other postretirement benefit plans) or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the other postretirement benefit substantive plan. Gains or losses that are not recognized in net periodic pension cost or net periodic postretirement benefit cost when they arise are recognized in other comprehensive income. Those gains or losses are subsequently recognized as a component of net periodic pension cost or net periodic postretirement benefit cost based on the recognition and amortization provisions of Subtopic 715-30 or Subtopic 715-60.") and transition asset remaining in accumulated other comprehensive income. A settlement also may accelerate recognition in income of a transition obligation under the constraint in paragraph [715-60-35-39](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-39). ##### [715-60-35-151](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-151) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:46f3512c88b2f9d944fd6eb79321dc8fb86a9762728f970e9214bba29c14bf5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subsection, the maximum gain or loss subject to recognition in income when a postretirement benefit obligation is settled is the net [gain or loss](https://asc.understandingaccounting.org/glossary/g/#gain-or-loss "A change in the value of either the benefit obligation (projected benefit obligation for pension plans or accumulated postretirement benefit obligation for other postretirement benefit plans) or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the other postretirement benefit substantive plan. Gains or losses that are not recognized in net periodic pension cost or net periodic postretirement benefit cost when they arise are recognized in other comprehensive income. Those gains or losses are subsequently recognized as a component of net periodic pension cost or net periodic postretirement benefit cost based on the recognition and amortization provisions of Subtopic 715-30 or Subtopic 715-60.") included in accumulated other comprehensive income defined in paragraphs [715-60-35-23 through 35-32](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-23) plus any transition asset remaining in accumulated other comprehensive income. That maximum gain or loss includes any gain or loss resulting from remeasurements of [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") and the accumulated postretirement benefit obligation at the time of settlement. ##### [715-60-35-152](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-152) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0eede108b50ba5d4c507cc53180da006b5b59822aa77c5c2d9fcb4f99362955c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entire accumulated postretirement benefit obligation is settled and the maximum amount subject to recognition is a gain, the settlement gain shall first reduce any transition obligation remaining in accumulated other comprehensive income; any excess gain shall be recognized in income. ##### [715-60-35-153](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-153) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:120589ca19b6e6f631cd785cd4c0b5fcd356482d4348456fc844c3c691ce9e0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entire accumulated postretirement benefit obligation is settled and the maximum amount subject to recognition is a loss, the maximum settlement loss shall be recognized in income. If only part of the accumulated postretirement benefit obligation is settled, the employer shall recognize in income the excess of the pro rata portion (equal to the percentage reduction in the accumulated postretirement benefit obligation) of the maximum settlement gain over any remaining transition obligation or a pro rata portion of the maximum settlement loss. ##### [715-60-35-154](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-154) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:a836bc57f976220d7a44e092779ce595a9718341c5f0b189ee555283c2a21873 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [715-60-35-39](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-39), in measuring the gain or loss subject to recognition in income when a postretirement benefit obligation is settled, an employer must determine whether recognition in income of an additional amount of any transition obligation remaining in accumulated other comprehensive income is required pursuant to the constraint on delayed recognition in income. Any additional transition obligation required to be recognized in income as a result of a settlement is recognized when the related settlement is recognized (see paragraph [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40)). ##### [715-60-35-155](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-155) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:ccf930e0458ea2cb67cbffeb35e8572bc25e4f1c1480befd79b1ed0197827f36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the plan is the unit of accounting, the determination of the effects of a settlement considers only the net gain or loss and transition obligation or asset included in accumulated other comprehensive income related to the plan for which all or a portion of the accumulated postretirement benefit obligation is being settled. ##### [715-60-35-156](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-156) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:78212812589da0c795fd31b65de8f5aae85045a09bc1289df51e9471700ca070 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the purchase of a [participating insurance](https://asc.understandingaccounting.org/glossary/p/#participating-insurance "Insurance in which the policyholder is entitled to participate in the earnings or surplus of the insurance entity. The participation occurs through the distribution of dividends to policyholders.") contract constitutes a settlement, the maximum gain (but not the maximum loss) shall be reduced by the cost of the [participation right](https://asc.understandingaccounting.org/glossary/p/#participation-right "A purchaser's right under a participating insurance contract to receive future dividends or retroactive rate credits from the insurance entity.") before determining the amount to be recognized in income (see paragraphs [715-60-35-109 through 35-120](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-109) and [715-60-35-160](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-160)). ##### [715-60-35-157](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-157) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:2b513c8718647b55ed5c5ec432d188bfb51316233e67da5eb33e64c80a51f3c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the following types of settlements, the cost of the settlement is: 1. a For a cash settlement, the amount of cash paid to plan participants 2. b For a settlement using nonparticipating insurance contracts, the cost of the contracts 3. c For a settlement using participating insurance contracts, the cost of the contracts less the amount attributed to participation rights (see paragraphs [715-60-35-115 and 35-116](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-115)). ##### [715-60-35-158](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-158) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:32a50345a68dfc855c7e705b2a24a7f601ae7f703276b86fb6015ca110bce4d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the cost of all settlements in a year is less than or equal to the sum of the service cost and interest cost components of net postretirement benefit cost for the plan for the year, gain or loss recognition is permitted but not required for those settlements. However, the accounting policy adopted shall be applied consistently from year to year. ##### [715-60-35-159](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-159) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:916c1dd1a56fa383c45ae2352e30524cd8079049cdde7cf3a89cc8f2d271704b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A settlement requires remeasurement of the accumulated postretirement benefit obligation before the settlement. In addition, after the settlement, net periodic postretirement benefit cost for the remainder of the year is remeasured. ##### [715-60-35-160](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-160) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d0bb65dee745679568bde7ab7ba756498dba9b95d308b900e6256516fd39038c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an [insurance contract](https://asc.understandingaccounting.org/glossary/i/#insurance-contract "A contract in which an insurance entity unconditionally undertakes a legal obligation to provide specified benefits to specific individuals in return for a fixed consideration or premium. An insurance contract is irrevocable and involves the transfer of significant risk from the employer (or the plan) to the insurance entity.") is purchased from an insurance entity controlled by the employer, or if a participating insurance contract causes the employer to remain subject to all or most of the risks and rewards associated with the benefit obligation covered or the assets transferred to the insurance entity, that contract is not an insurance contract and the purchase of that contract does not constitute a settlement pursuant to paragraphs [715-60-35-150 through 35-160](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-150) . #### Remeasurement of Cost Due to Curtailments ##### [715-60-35-161](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-161) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:cc975b5b3d5d693d953aaf9e48efa8889a54f3d2dbedf3753d0ae5ff2640685c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Curtailments](https://asc.understandingaccounting.org/glossary/c/#curtailment-of-a-postretirement-benefit-plan "An event that significantly reduces the expected years of future service of active plan participants or eliminates the accrual of defined benefits for some or all of the future services of a significant number of active plan participants.") are events that may require income or expense recognition of certain amounts that were initially recognized in other comprehensive income. ##### [715-60-35-162](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-162) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f04b3790b2df0a4a7c3f771586d7781627af6695f30a2895e390a27e48892785 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reduction in active plan participants' expected years of future service or elimination of future benefit accruals caused by a curtailment raises doubt about the continued existence of the future economic [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") of prior plan amendments. ##### [715-60-35-163](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-163) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:9c02ca950fbcb40368a6ce00ca2b9eb9c8101986661d6209a7632465700bad58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accordingly, these Subsections require recognition in net periodic postretirement benefit cost of any related [prior service cost](https://asc.understandingaccounting.org/glossary/p/#prior-service-cost "The cost of retroactive benefits granted in a plan amendment. Retroactive benefits are benefits granted in a plan amendment (or initiation) that are attributed by the benefit formula to employee services rendered in periods before the amendment.") included in accumulated other comprehensive income. ##### [715-60-35-164](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-164) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e4cbace40c5cfd2a99cb8448c6797a3f484486d76009d0b3d29910975093223b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The prior service cost included in accumulated other comprehensive income associated with the portion of the future years of service that had been expected to be rendered, but as a result of a curtailment are no longer expected to be rendered, is a loss. For purposes of measuring the effect of a curtailment, prior service cost includes the cost of plan amendments and any remaining transition obligation. For example, a curtailment may result from the termination of a significant number of employees who were plan participants at the date of a prior plan amendment. ##### [715-60-35-165](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-165) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:59eced9dbda7af13b6b6106cf0f7bb0c7c06322fe7dd325da90aca4719b1a2c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The loss associated with that curtailment is measured as the portion of the remaining prior service cost included in accumulated other comprehensive income related to that (and any prior) plan amendment attributable to the previously expected remaining future years of service of the employees who were terminated and the portion of the remaining transition obligation attributable to the previously expected remaining future years of service of the terminated employees who were plan participants at the date of transition. ##### [715-60-35-166](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-166) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:555faec26fa4cdfb57a3b37e91f83d8e7addd064de676daece069ab2f573839f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A curtailment also may result from terminating the accrual of additional benefits for the future services of a significant number of employees. The loss in that situation is both of the following: 1. a A proportionate amount of the remaining prior service cost included in accumulated other comprehensive income based on the portion of the remaining expected years of service in the amortization period that originally was attributable to those employees who were plan participants at the date of the plan amendment and whose future accrual of benefits has been terminated 2. b A proportionate amount of the transition obligation remaining in accumulated other comprehensive income based on the portion of the remaining years of service of all participants active at the date of transition that originally was attributable to the remaining expected future years of service of the employees whose future accrual of benefits has been terminated. ##### [715-60-35-167](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-167) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d40ee9eeccde04df1f7d6acb7552a6545fb2dfe382d2cab3cb976181d86dd663 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a full curtailment occurs, the entire prior service cost and transition obligation remaining in accumulated other comprehensive income is a loss because there are no future years of service to be rendered. ##### [715-60-35-168](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-168) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:e4bc114e152d4cbd04e8e9ad55b06646e1d5a9e4a11b5012787619f003b1606b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting for a curtailment is not applied to any prior service cost newly created at the time of the curtailment. ##### [715-60-35-169](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-169) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:efd3671767de0e69ecf8b5a1c461d8c620e99f192a6626960830551e1a113da2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accumulated postretirement benefit obligation may be decreased (a gain) or increased (a loss) by a curtailment. That (gain) loss shall reduce any net loss (gain) included in accumulated other comprehensive income as follows: 1. a To the extent that such a gain exceeds any net loss included in accumulated other comprehensive income (or the entire gain, if a net gain exists), it is a curtailment gain. 2. b To the extent that such a loss exceeds any net gain included in accumulated other comprehensive income (or the entire loss, if a net loss exists), it is a curtailment loss. For purposes of applying the provisions of this paragraph, any transition asset remaining in accumulated other comprehensive income shall be treated as a net gain and shall be combined with the net gain or loss arising after transition to the Settlements, Curtailments, and Certain Termination Benefits Subsections. ##### [715-60-35-170](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-170) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:debfaa87399da004b3524c9359f38dc244cd1125a677b851619030e2a8c8aedd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Increases in the accumulated postretirement benefit obligation that reflect [termination benefits](https://asc.understandingaccounting.org/glossary/t/#termination-benefits "Benefits provided by an employer to employees in connection with their termination of employment. They may be either special termination benefits offered only for a short period of time or contractual benefits required by the terms of a plan only if a specified event, such as a plant closing, occurs.") are excluded from the scope of paragraphs [715-60-35-161](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-161) through this paragraph (see paragraphs [715-60-25-4 through 25-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-4) for guidance on accounting for termination benefits). ##### [715-60-35-171](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-171) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:2421fc32ec657f410e2e6fbcd901bfe4312e301e8e8d346d17d61ec9967dce73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the sum of the effects identified in paragraphs [715-60-35-164 through 35-169](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-164) is a net loss, it shall be recognized in income when it is probable that a curtailment will occur and the net effect is reasonably estimable. If the sum of those effects is a net gain, it shall be recognized in income when the related employees terminate or the plan suspension or amendment is adopted. #### Relationship of Settlements or Curtailments to Other Events ##### [715-60-35-172](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-172) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7190ae70b47a4051b34bb8ece64ed9fe868e08ae76775372734f4040db7eabc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A settlement and a curtailment may occur separately or together. ##### [715-60-35-173](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-173) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:0dc5e4e2cfe43259a2a2a34fe6a8d02280f1a210edd9b3d2a616b4d143d715c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If benefits expected to be paid in future periods are eliminated for some plan participants (for example, because a significant portion of the work force is dismissed or a plant is closed) but the plan remains in existence and continues to pay benefits, to invest assets, and to receive contributions, a curtailment has occurred but not a settlement. ##### [715-60-35-174](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-174) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fccd6df2f6c951c392a9b94efebdf07859254e315b32f39990127f7f9755bc0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an employer purchases nonparticipating insurance contracts for the accumulated postretirement benefit obligation and continues to provide defined benefits for future service, either in the same plan or in a successor plan, a settlement has occurred but not a curtailment. ##### [715-60-35-175](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-175) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:1853c7a56764f8d32aae1af6439e4e35882a8683164be8e8c23e667958d76b65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [plan termination](https://asc.understandingaccounting.org/glossary/p/#plan-termination "An event in which the pension plan or postretirement benefit plan ceases to exist and all benefits are settled by the purchase of insurance contracts (for example, annuities) or by other means. The plan may or may not be replaced by another plan. A plan termination with a replacement plan may or may not be in substance a plan termination for accounting purposes.") occurs (that is, the obligation is settled and the plan ceases to exist) and the plan is not replaced by a successor defined benefit plan, both a settlement and a curtailment have occurred (whether or not the employees continue to work for the employer). ##### [715-60-35-176](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-176) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:3ec4f0d87c9f1998cf429d8fe16bf76d1d7a8a4bf5b67128989bbb38683f3ccf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The settlement or the termination of one plan and the adoption of a substantially equivalent replacement plan does not trigger recognition in income of prior service cost. Neither of those events, absent a curtailment, raises sufficient doubt as to the existence of future economic benefits to trigger that recognition in income. ### Split-Dollar Life Insurance Arrangements ##### [715-60-35-177](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-177) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:7bf8004d14858d5f4a6c1d2616f6b17ed8cd1d5b15dccfecbce5184ab31311b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For an [endorsement split-dollar life insurance](https://asc.understandingaccounting.org/glossary/e/#endorsement-split-dollar-life-insurance "A split-dollar life insurance arrangement in which the entity owns and controls the insurance policy. The employer enters into a separate agreement that splits the policy benefits between the employer and the employee. The employer owns the policy, controls all rights of ownership, and may terminate the insurance policy (and, in turn, the policy benefits promised to the employee). To effect the split-dollar arrangement, the employer endorses a portion of the death benefits to the employee (the employee designates a beneficiary for this portion of the death benefits). Upon the death of the employee, the employee's beneficiary typically receives the designated portion of the death benefits directly from the insurance entity and the employer receives the remainder of the death benefits.") arrangement within the scope of the Split-Dollar Life Insurance Arrangements Subsections, an employer shall recognize a liability for future [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") in accordance with this Subtopic (if, in substance, a [postretirement benefit plan](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefit-plan "See Plan.") exists) or Subtopic 710-10 (if the arrangement is, in substance, an individual deferred compensation contract) based on the substantive agreement with the employee.A liability for the benefit obligation under this Subtopic or Subtopic 710-10 has not been settled through the purchase of a typical endorsement split-dollar life insurance arrangement. ##### [715-60-35-178](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-178) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:38aca844bddb419e4524a2de1faa8550b79bbfacaf1a17212202e05fb7cad6fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the employer has effectively agreed to maintain a life insurance policy during the employee's retirement, the cost of the insurance policy during postretirement periods shall be accrued in accordance with either this Subtopic or Subtopic 710-10. ##### [715-60-35-179](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-179) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:09b0232ef6c6f5e41a6e903324a52bce70494d2c34a5418672b6dc6bc617d08d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, if the employer has effectively agreed to provide the employee with a death benefit, the employer shall accrue, over the service period, a liability for the [actuarial present value](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value "The value, as of a specified date, of an amount or series of amounts payable or receivable thereafter, with each amount adjusted to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements for events such as death, disability, withdrawal, or retirement) between the specified date and the expected date of payment.") of the future death benefit as of the employee's expected retirement date, in accordance with either this Subtopic or Subtopic 710-10. ##### [715-60-35-180](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-180) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:39dc65ba2f3871a0128d7c9a89b690cded12643a4126dc94ae896d861c221161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer shall recognize a liability for the postretirement benefit related to a collateral assignment split-dollar life insurance arrangement in accordance with either this Subtopic (if, in substance, a postretirement benefit plan exists) or Subtopic 710-10 (if the arrangement is, in substance, an individual deferred compensation contract) if the employer has agreed to maintain a life insurance policy during the employee's retirement or provide the employee with a death benefit based on the substantive agreement with the employee. ##### [715-60-35-181](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-181) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:db3de84e8879af74d4cd7a7edd32415bef8c3c65dfc0d884b615c2d95e68004e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the employer has effectively agreed to maintain life insurance policy during the employee's retirement, the estimated cost of maintaining the insurance policy during the postretirement period shall be accrued in accordance with either this Subtopic or Subtopic 710-10. ##### [715-60-35-182](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-182) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:f79384b402b485fda0eab1bc5f193a66d3ee492ac94bf520e3d2602f705d1e0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, if the employer has effectively agreed to provide the employee with a death benefit, the employer shall accrue a liability for the actuarial present value of the future death benefit as of the employee's expected retirement date, in accordance with either this Subtopic or Subtopic 710-10. ##### [715-60-35-183](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-183) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:fe340904884d43639002fc7e5d4d81a134818da0ff576b78202e83d8d5d00314 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of the Split-Dollar Life Insurance Arrangements Subsections, an employer has agreed to maintain a life insurance policy if the employer has stated or implied commitment to provide loans to an employee to fund premium payments on the underlying insurance policy during the postretirement period. Absent evidence to the contrary, it shall be presumed that an employer will provide loans to an employee to fund premium payments on the underlying insurance policy in the postretirement period if the employer has provided loans in the past or if the employer is currently promising to provide loans in the future. ##### [715-60-35-184](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-184) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:4856971aab47e91352dad5902a146811116a202e1c732bbc17e9f941cd399c22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In periods following the inception of the collateral assignment split-dollar life insurance arrangement, employers shall continue to evaluate (pursuant to the guidance in the Split-Dollar Life Insurance Arrangements Subsections) whether a change in facts and circumstances (for example, an amendment to the arrangement or change from the employer's past practice) has altered the substance of the collateral assignment split-dollar life insurance arrangement, which could result in a liability or an adjustment to a previously recognized liability, for a postretirement benefit. ##### [715-60-35-185](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-185) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:41.029Z to 2026-09-10T01:00:41.029Z Record version: sha256:d06c0f57848a3995ec426b23ae21ddabb4c632d1ed41b0eb50ce1aaeebc17633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, an employer shall recognize and measure an asset based on the nature and substance of the collateral assignment split-dollar life insurance arrangement.