# ASC 965-10: Plan Accounting—Health and Welfare Benefit Plans — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/965/10/) 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): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:31.271Z Record version: sha256:2737bf0db516f87e9d0002cf8ab365cce1e6f2d2db3e26e46c8eec7676216e52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10: Plan Accounting—Health and Welfare Benefit Plans — Overall ### Machine-generated study aids ```json { "summary": "ASC 965-10 is the Overall subtopic of the health and welfare benefit plan accounting Topic; it defines the scope and gives an overview of how such plans report. It applies to all entities that are defined benefit or defined contribution health and welfare benefit plans, describes how benefits may be delivered (insured contracts versus a self-funded trust such as a VEBA/501(c)(9) trust or 401(h) account), and flags that the insurance arrangement drives how assets and benefit obligations are accounted for. It also notes the ERISA reporting backdrop, including that many plans must file GAAP financial statements.", "key_points": [ "Benefit plan accounting is split among Topic 960 (defined benefit pension plans), Topic 962 (defined contribution pension plans), and Topic 965 (health and welfare benefit plans), while Topic 715 governs the employer's own accounting (965-10-05-1).", "The Topic applies to all entities that are either defined benefit or defined contribution health and welfare benefit plans (965-10-15-2), and its Subtopics provide only incremental guidance for those entities (965-10-15-1).", "Benefits may be provided through insurance contracts paid for by the plan (an insured plan) or from net assets accumulated in a trust established by the plan (a self-funded plan); plans may be contributory or noncontributory (965-10-05-4).", "Plan assets may be held in a legally restricted trust such as a VEBA/501(c)(9) trust, a 401(h) account, or other funding vehicle; a trust always exists for a multiemployer plan, trusteed plans with more than 100 participants generally require an audit, and DOL will not accept an accountant's report covering assets of more than one plan (965-10-05-5).", "A VEBA trust with a bank or trust company trustee that holds assets of more than one plan of a single employer or commonly controlled group is a master trust subject to DOL master trust filing requirements (965-10-05-6).", "Accounting for plan assets and benefit obligations depends on the insurance arrangement — whether the insurer assumes risk (experience-rated, pooled, minimum premium, stop-loss) or merely provides administrative or investment management services (965-10-05-7); experience-rating refunds are often not determined until months after the policy year ends (965-10-05-8).", "Paragraphs 965-205-45-6 through 45-9 and 965-205-50-2 through 50-4 apply when a portion or all of the benefits are funded through a 401(h) feature in a defined benefit pension plan (965-10-15-3)." ], "categories": [ "Industry-specific", "Financial statement presentation", "Disclosure" ], "audience_level": "introductory", "student_note": "This is the gateway subtopic: it tells you which Topic governs a given benefit plan and reminds you that the plan itself — not the employer — is the reporting entity (employer accounting is ASC 715). A common misunderstanding is assuming a fully insured plan needs no plan-level accounting; you must analyze the insurance contract to see whether risk actually transferred.", "related_topics": [ "960", "962", "715", "965-205", "965-30", "965-40" ], "key_concepts": [ "health and welfare benefit plan", "insured plan vs. self-funded plan", "veba / 501(c)(9) trust", "401(h) account", "master trust", "experience-rating refund", "erisa reporting", "multiemployer plan" ] } ``` Source downloaded (UTC): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:24.502Z Record version: sha256:82b0fdc07315f92841410bed371e90084e7b595debb02b2e216bb8432828c246 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/965/10/#00-status) SEC content: no ##### [965-10-00-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:24.502Z Record version: sha256:f99fda85e867c9e99f7b00d52ff9dbc71b686943907abf19f9511119c7b002da 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 (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Contributory Plan (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Health and Welfare PlansSupersededAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution Health and Welfare PlansSupersededAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Noncontributory PlanAddedAccounting Standards Update No. 2014-0603/14/2014
965-10-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-15-3AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:64230167dbc40cf63df235993355e5cf816b72fe90331d2ca5eeca4acef7d8dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/965/10/#05-overview-and-background) SEC content: no ##### [965-10-05-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:63309b989d489098fcaacd234f9b7a9c2f4ea2d1da1b18a84621b272c5de4c31 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 benefit plans. The Topics include: 1. a Plan Accounting—Defined Benefit Pension Plans, Topic 960 2. b Plan Accounting—Defined Contribution Pension Plans, Topic 962 3. c Plan Accounting—Health and Welfare Benefit Plans, (this Topic). Additionally, Topic 715 addresses financial accounting and reporting for an employer that offers pension, other postretirement, and certain special or contractual termination [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.") to its employees. ##### [965-10-05-2](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:ed782547805d42da7e85d056a2e06c4c5ebebfe3f4592be6da3f3d61ef4bdf88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Plan Accounting—Health and Welfare Benefit Plans Topic includes the following Subtopics: 1. a Overall 2. b Net Assets Available for Plan Benefits 3. c Plan Benefit Obligations 4. d Terminating Plans 5. e Presentation of Financial Statements 6. f Receivables 7. g Investments—Debt and Equity Securities 8. h Investments—Other 9. i Property, Plant, and Equipment. ##### [965-10-05-3](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:be4f8e718f9e8d066bb485168bff56a33c3b372ecef43c144050ad2026da07d8 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 [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). #### Characteristics of Plans ##### [965-10-05-4](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:db16c85e384b924f961cc83cbe1347e33e4759fb9f65d6bfbe53660f6cddd591 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan participants may be active or terminated employees (including retirees), as well as covered dependents and beneficiaries, of a single employer or group of employers. Employer contributions may be voluntary or required under the terms of a collective bargaining agreement negotiated with one or more labor organizations. Plans may require contributions from employers and participants ([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.")) or from employers only ([noncontributory plans](https://asc.understandingaccounting.org/glossary/n/#noncontributory-plan "A pension or other postretirement benefit plan under which participants do not make contributions.")). During periods of unemployment, a noncontributory plan may require contributions by participants to maintain their eligibility for benefits. Benefits may be provided in any of the following manners: 1. a Through insurance contracts paid for by the plan (an insured plan) 2. b From net assets accumulated in a trust established by the plan (a self-funded plan). ##### [965-10-05-5](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:5e71de7e51bc371053b729c1461dff50d9322dd144947a445d27024e0cfe035d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As noted in the preceding paragraph, a plan may establish a trust to hold assets to pay all or part of the covered benefits. The assets may be segregated and legally restricted under a trust arrangement (such as a voluntary employees' beneficiary association or a 501(c)(9) trust, a 401(h) account, or other funding vehicles). Generally, if a separate trust exists, financial statements are required under the Employee Retirement Income Security Act. A trust always exists for a multiemployer plan. Such trusteed plans with more than 100 participants generally will require an audit. For Employee Retirement Income Security Act filings, the U.S. Department of Labor will not accept an accountant's report that covers the assets of more than one plan. ##### [965-10-05-6](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:ac23fb5e76c7c065479599514e6df9f413bf85abaa84bf384cd15d0178c347fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the trustee of the Voluntary Employees' Beneficiary Association is a bank or trust company, and the trust holds the assets of more than one plan sponsored by a single employer or by a group of entities under common control, it is a master trust subject to the Department of Labor's master trust filing requirements. #### Arrangements with Insurance Entities ##### [965-10-05-7](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:c936e789b0d47f59d69a060b8880cb9737175dc96317e95dfc1cc4101c9260b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of, and method of accounting for, the assets and benefit obligations of a health and welfare benefit plan may be determined by the arrangement with an insurance entity. The insurance entity may assume all or a portion of the financial risk (for example, in [fully insured experience-rated arrangements](https://asc.understandingaccounting.org/glossary/f/#fully-insured-experience-rated-arrangement "In a fully insured experience-rated arrangement, specified benefits are paid by the insurance entity that assumes all the financial risk. Contract experience is monitored by the insurance entity. Contract experience may or may not include the experience of other similar contract holders. To the extent that benefits incurred plus risk charges and administration costs are less than premiums paid, the related plan is entitled to an experience-rating refund or dividend (see paragraphs 965-310-25-2965-310-25-3). If the total of benefits incurred, risk charges, and administrative costs exceeds premiums, the accumulated loss is generally borne by the insurance entity but may be carried over to future periods until it has been recovered (see paragraph 965-30-25-5). The related plan often has no obligation to continue coverage or to reimburse the carrier for any accumulated loss, although there are certain types of contracts that require additional payments by the plan."), [fully insured pooled arrangements](https://asc.understandingaccounting.org/glossary/f/#fully-insured-pooled-arrangement "In a fully insured pooled arrangement, specified benefits are covered by the insurance entity. The insurance entity pools the experience of the plan with that of other similar businesses and assumes the financial risk of adverse experience. In such an arrangement, a plan generally has no obligation for benefits covered by the arrangement other than the payment of premiums due to the insurance entity (see paragraph 965-10-05-9)."), [minimum premium plan arrangements](https://asc.understandingaccounting.org/glossary/m/#minimum-premium-plan-arrangement "In a minimum premium plan arrangement, specified benefits are paid by the insurance entity. The insurance contract establishes a dollar limit, or trigger point. All claims paid by the insurance entity below the trigger point are reimbursed by the plan to the insurance entity. The insurance entity is not reimbursed for benefits incurred that exceed the trigger point. This type of funding arrangement requires the plan to fund the full claims experience up to the trigger point. Minimum premium plan arrangements may have characteristics of both self-funded and fully insured experience-rated arrangements."), and [stop-loss arrangements](https://asc.understandingaccounting.org/glossary/s/#stop-loss-arrangement "In a stop-loss insurance arrangement, a plan's obligation for any plan participant's claims may be limited to a fixed dollar amount, or the plan's total obligation may be limited to a maximum percentage (for example, 125 percent) of a preset expected claims level. These arrangements are commonly used with administrative service arrangements. The insurance entity assumes the benefit obligation in excess of the limit. Stop-loss insurance arrangements may have characteristics of both self-funded and fully insured arrangements.")), or it may provide only administrative services (for example, in [administrative service arrangements](https://asc.understandingaccounting.org/glossary/a/#administrative-service-arrangement "In an administrative service arrangement, the plan retains the full obligation for plan benefits. The plan may engage an insurance entity or other third party to act as the plan administrator. The administrator makes all benefit payments, charges the plan for those payments, and collects a fee for the services provided.")) or investment management services. It is important to have an understanding of the insurance arrangement to determine whether any or all of the risks associated with benefit payments or claims have been transferred to the insurance entity. ##### [965-10-05-8](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:2b6c9ef255888612763385ded12d4d5bd315da91f6fdfb3cd59ca9ef42acb248 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain group insurance contracts covering health and welfare benefit plans include a provision for a refund, at the end of the policy year, of the excess of premiums paid over the total of paid claims, required reserves, and the fee charged by the insurance entity. Often such experience-rating refunds (or dividends) are not determined by the insurance entity for several months after the end of the policy year. ##### [965-10-05-9](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:f2537f7d8fe2924feec3107c063e29b90f5e76f558a742cb3f5f9b3c75a0824d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits to participants may be provided through insurance arrangements that transfer the risks of loss or liability to an insurance entity. Group insurance contracts for health and welfare plans are usually written for a one-year period, although the contract may provide for annual renewal. The contract generally specifies, among other things, all of the following: 1. a The schedule of benefits 2. b Eligibility rules 3. c Premium rate per eligible participant 4. d The date that premiums are due. #### The Employee Retirement Income Security Act of 1974 ##### [965-10-05-10](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:a4c0e6bbc6a4f42edf8215a263a0775a7003652118915234fce4fdb5ed0296d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health and welfare benefit 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, it 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). ##### [965-10-05-11](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:a67a44a239de7011039d839a5d992f23c501e2bd0fe70bc60981803773da99f6 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 health and welfare benefit plan financial statements. Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:b92afdbcbc13d3e4f2f9ea6c4c3292e46f85382b36b07f48848b7f4a357aa1cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/965/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [965-10-15-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:c963be444e8755660d7859ad710d5bd0e3355541d9cb1090816f337f1d124158 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Plan Accounting—Health and Welfare Benefit 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—Health and Welfare Benefit Plans Subtopics. #### Entities ##### [965-10-15-2](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:f7911eb58e0281e7fa78078f6783c0076285f3da2f772f667b7e1c754b1fe973 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all entities that are either [defined benefit](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.)") or [defined contribution health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") (referred to as [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services.")). ##### [965-10-15-3](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:517961c09d9f36c15f01040e501682e8776182c154071eeff5c8b34dbaea0092 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [965-205-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-6) and [965-205-50-2 through 50-4](https://asc.understandingaccounting.org/asc/205/965/#205-965-50-2) apply to health and welfare benefit plans if a portion or all of the [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.") under such plans are funded through a 401(h) feature in a defined benefit pension plan.