# ASC 960-10: Plan Accounting—Defined Benefit Pension Plans — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/960/10/) 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): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:34.407Z Record version: sha256:b78e968d78b24080e39c306b39db320069a400271a53cae07490838e865226e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10: Plan Accounting—Defined Benefit Pension Plans — Overall ### Machine-generated study aids ```json { "summary": "ASC 960-10 is the Overall subtopic of the defined benefit pension plan accounting Topic, setting the scope of and providing an overview of financial reporting by the plan itself (not the sponsoring employer, which follows Topic 715). Defined benefit plans promise participants determinable benefits based on factors such as age, years of service, and compensation, and because the plan's net assets are the means of paying those benefits, net asset information is necessary to assess the plan's ability to pay benefits when due. The Topic applies to all ongoing plans (funded or unfunded, ERISA and non-ERISA, U.S. and comparable foreign plans reporting under U.S. GAAP) but does not itself require any plan to prepare or distribute financial statements.", "key_points": [ "Topic 960 covers plan-level accounting for defined benefit pension plans; defined contribution plans fall under Topic 962, health and welfare plans under Topic 965, and employer-side accounting under Topic 715 (960-10-05-1).", "The Topic is organized into Subtopics for Overall, Accumulated Plan Benefits, Net Assets Available for Plan Benefits, Terminating Plans, Presentation of Financial Statements, Receivables, Investments—Other, and Property, Plant, and Equipment (960-10-05-2).", "Defined benefit plans promise specified, determinable benefits based on factors such as age, years of service, and compensation, and net asset information is necessary to assess the plan's ability to pay benefits when due (960-10-05-4).", "This Topic does not require the preparation or distribution of any plan's financial statements (960-10-05-5); ERISA reporting requirements are largely outside the Codification but must still be considered by preparers (960-10-05-6 through 05-7).", "Scope covers all ongoing plans, funded or unfunded, for employees of one or more employers or members of a trade or employee association, whether or not subject to ERISA, and however financed—trust funds, insurance contracts, both, or no intermediary funding agency (960-10-15-2(a)).", "Non-U.S. plans similar to U.S. plans are within scope if their financial statements are intended to conform with U.S. GAAP (960-10-15-2(b)); government-sponsored social security plans are excluded (960-10-15-3(a)).", "Terms such as actuarial asset value, benefit security, general account, nonvested benefit information, and retired life fund are widely used in practice but are not defined in the standards (960-10-05-8)." ], "categories": [ "Industry-specific", "Compensation and benefits", "Financial statement presentation", "Presentation" ], "audience_level": "intermediate", "student_note": "The most common confusion is mixing up plan accounting (Topic 960, where the plan is the reporting entity) with employer accounting (Topic 715, the sponsor's books); a second trap is assuming GAAP requires plan financial statements, when 960-10-05-5 expressly does not—that requirement comes from ERISA.", "related_topics": [ "715", "962", "965", "960-20", "960-30", "960-40" ], "key_concepts": [ "defined benefit pension plan", "net assets available for benefits", "accumulated plan benefits", "erisa reporting", "plan-level financial statements", "ongoing plan", "trust or insurance contract funding", "scope exclusions" ] } ``` Source downloaded (UTC): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:27.759Z Record version: sha256:5afbf7902b1575ae30b2dc3752b57fa706fb16b3f403972bb3c90e32dc057445 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/960/10/#00-status) SEC content: no ##### [960-10-00-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:27.759Z Record version: sha256:c2cccd550f920f354393e2fb9be4b8aadfb434f8de9e65a950128a00268e6105 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Service (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Service (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:a3abc72fc4c8b4f678279d55fa0446df5892318055bc7dbc186d8ff2b7427ef2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/960/10/#05-overview-and-background) SEC content: no ##### [960-10-05-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:672531f5e70985a79d1729ad9b5b4789ef98bf1328b8bde821037c32f6b4f37e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for benefit plan accounting due to the differing accounting treatments for various forms of [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") [benefit](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.") plans. The Topics include: 1. a Plan Accounting—Defined Benefit Pension Plans, (this Topic) 2. b Plan Accounting—Defined Contribution Pension Plans, Topic 962 3. c Plan Accounting—Health and Welfare Benefit Plans, Topic 965. Additionally, Topic 715 addresses financial accounting and reporting for an employer that offers pension, other postretirement, and certain special or contractual benefits to its employees. ##### [960-10-05-2](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:a21b6803152b600c7d6873c3c250c1663ce1e580937791c8a110d3f92b2c67a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Plan Accounting—Defined Benefit Pension Plans Topic includes the following Subtopics: 1. a Overall 2. b [Accumulated Plan Benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries.") 3. c Net Assets Available for Plan Benefits 4. d Terminating Plans 5. e Presentation of Financial Statements 6. f Receivables 7. g Investments—Other 8. h Property, Plant, and Equipment. ##### [960-10-05-3](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:64559b60728bac86630672cb752136d5f7746a0c0c6676eade73a639e6567b2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides scope-related guidance for this Topic and an overview of accounting and reporting for [defined benefit pension plans](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.)"). ##### [960-10-05-4](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:7231266d107db06e33b61cf84b890174b1a2b108e1e541a7b2fc94ecdc9bd854 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined benefit pension plans provide a promise to pay to participants specified benefits that are determinable and are based on such factors as age, years of [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service."), and compensation. A plan's net assets are the existing means by which it may provide benefits, therefore, [net asset information](https://asc.understandingaccounting.org/glossary/n/#net-asset-information "Information regarding the net assets available for benefits.") is necessary in assessing a plan's ability to pay benefits when due. ##### [960-10-05-5](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:03e31ed7698d74fc48011fc41af7055425616799e01b62ebc19f0f402460c89c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not require the preparation or distribution of any plan's financial statements. #### The Employee Retirement Income Security Act of 1974 ##### [960-10-05-6](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:01a347f1d938784fea1d2e6dc1b4c45ac020e1aa10e4b08c547daa3daae14766 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined benefit pension plans are generally subject to certain of the reporting and other requirements of the Employee Retirement Income Security Act of 1974. In addition to establishing certain minimum standards for participation, vesting, and funding for employee benefit plans of private entities, the Act also requires annual reporting of certain information to particular governmental agencies and summarized information to plan participants. For many plans, the reporting requirements include financial statements prepared in conformity with generally accepted accounting principles (GAAP). ##### [960-10-05-7](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:ce6f3e9957772abf7087f554b9971825cc51cd89d43151b1deeafb026eb28c7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reporting requirements of the Act, except for certain particular references, are not included in the Codification, but they should nonetheless be considered by those responsible for the preparation of defined benefit plan financial statements. ##### [960-10-05-8](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:6c001e025829797b46445b02d11ad9b5fad133a2730900bf55c21cd130e7dd8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following terms are widely used when addressing benefit plan accounting and reporting, yet are not included in the text of the standards: 1. a [Actuarial asset value](https://asc.understandingaccounting.org/glossary/a/#actuarial-asset-value "A value assigned by an actuary to the assets of a plan generally for use in conjunction with an actuarial cost method.") 2. b [Benefit security](https://asc.understandingaccounting.org/glossary/b/#benefit-security "The plan's present and future ability to pay benefits when due.") 3. c [General account](https://asc.understandingaccounting.org/glossary/g/#general-account "An undivided fund maintained by an insurance entity that commingles plan assets with other assets of the insurance entity for investment purposes. That is, funds held by an insurance entity that are not maintained in a separate account are in its general account.") 4. d [Nonvested benefit information](https://asc.understandingaccounting.org/glossary/n/#nonvested-benefit-information "The actuarial present value of nonvested accumulated plan benefits.") 5. e [Retired life fund](https://asc.understandingaccounting.org/glossary/r/#retired-life-fund "That portion of the funds under an immediate participation guarantee contract that is designated as supporting benefit payments to current retirees."). Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:7ae1510b5685288e31fc65950a9b1f596c49764572b12ebfb83b9c3304d75b43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/960/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [960-10-15-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:82f2633f3760749b4530776088a1e36655480c14868a47a9403494f84ae7ed21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Plan Accounting—Defined Benefit Pension Plans Topic only provide incremental guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Plan Accounting—Defined Benefit Pension Plans Subtopics. #### Entities ##### [960-10-15-2](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:f488aa31714f094a4641a1718a28b3842644e9087a1b041aafb2ab1511c53ea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the following entities: 1. a All ongoing plans, funded or unfunded, that provide [pension benefits](https://asc.understandingaccounting.org/glossary/p/#pension-benefits "Periodic (usually monthly) payments made pursuant to the terms of the pension plan to a person who has retired from employment or to that person's beneficiary.") for the employees of one or more employers or for the members of a trade or other [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") association, including the following: 1. 1 [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 2. 2 Plans that are subject to the provisions of the Employee Retirement Income Security Act 3. 3 Plans that are not subject to the provisions of the Employee Retirement Income Security Act 4. 4 Plans that have no intermediary [funding agency](https://asc.understandingaccounting.org/glossary/f/#funding-agency "An organization or individual, such as a specific corporate or individual trustee or an insurance entity, that provides facilities for the accumulation of assets to be used for paying benefits under a pension plan; an organization, such as a specific life insurance entity, that provides facilities for the purchase of such benefits.") or plans that may be financed through any of the following: 1. i One or more trust funds 2. ii One or more contracts with insurance entities 3. iii A combination thereof. 2. b Plans maintained outside the United States that are similar to plans maintained in the United States if financial statements of such plans are intended to conform with U.S. generally accepted accounting principles (GAAP). ##### [960-10-15-3](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:79371cf3a6a132f36b6bc48e55d8c4ad4bb698a04df9194613198d5017ff2ccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a Government-sponsored social security plans.