# ASC 965-30-35: Plan Accounting—Health and Welfare Benefit Plans — Plan Benefit Obligations — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/965/30/#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): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:e677fbaec27c13476868a042937e3f53f2f330c0a89174ef92e427ca663ebf10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/965/30/#35-subsequent-measurement) SEC content: no #### Components of Benefit Obligations ##### [965-30-35-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:6b2b14c51adb497c3b1ef2c7aa4c7b591fc8011ccf31ce103b4c26d4c6e2880c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefit obligations for single-employer, multiple-employer, and multiemployer [defined benefit health and welfare 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.)") shall include the actuarial present value, as applicable, for all of the following: 1. a Claims payable, claims incurred but not reported, and premiums due to insurance entities. Claims incurred but not reported may be computed in the aggregate for active participants and retirees. Alternatively, if claims incurred but not reported are not calculated in the aggregate for active participants and retirees, such claims for retirees are recorded in the postretirement benefit obligation. 2. b [Accumulated eligibility credits](https://asc.understandingaccounting.org/glossary/a/#accumulated-eligibility-credits "Plan participants may qualify for a benefit in which eligibility credits or hours accumulate and result in the plan covering payment of insurance premiums or benefits for a period of time for those participants who have accumulated a sufficient number of such credits or hours to be eligible for the credits. Eligible participants are provided with insurance coverage during periods of unemployment, when employer contributions to the plan would not otherwise provide coverage or benefits. The accumulated eligibility credits are sometimes referred to as bank of hours.") and postemployment [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."), net of amounts currently payable 3. c Postretirement benefits for the following groups of participants: 1. 1 Retired plan participants, including their beneficiaries and covered dependents, net of amounts currently payable and claims incurred but not reported (assuming such amounts are included in the aggregate computation described in \[a\]). 2. 2 Other plan participants fully eligible for benefits 3. 3 Plan participants not yet fully eligible for benefits. ##### [965-30-35-1A](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:ced2332356def45e20d04f4ee8453052e30daeeee436c8a0530503dcb23a942b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a self-funded plan, the cost of incurred but not reported claims shall be measured at the present value, as applicable, of the estimated ultimate cost to the plan of settling the claims. Estimated ultimate cost shall reflect the plan's obligation to pay claims to or for participants, regardless of status of employment, beyond the financial statement date pursuant to the provisions of the plan or regulatory requirements. ##### [965-30-35-2](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:774e32cb073b574db2991736342960ba13d3251217e10457dfe22f7cdb2a653b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Administrative expenses expected to be paid by the plan (but not those paid directly by the plan's participating employer\[s\]) that are associated with providing the plan's benefits shall be reflected by either of the following: 1. a Including the estimated costs in the benefits expected to be paid by the plan 2. b Reducing the discount rate(s) used in measuring the benefit obligation. ##### [965-30-35-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:048e686a3359c96cc3e66cf1f181a05fa5540bdb0086ee7fbe0a54887542bc51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Aggregating claims payable and claims incurred but not reported is often appropriate if adequate time has passed to provide sufficient data on costs incurred and the actuarially determined expected cost of long-term medical claims is insignificant. ##### [965-30-35-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:0075b4e696abb7294b0ce60d26656b60dc4df9d9dfc5c4817d816193b5f40257 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits expected to be earned for future service by active participants (for example, vacation benefits) during the term of their employment shall not be included. ##### [965-30-35-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:7c23f88040e5c272ac314a220f9085c9ac6c5bbcbb20f0100307a4a711cb7be9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefit obligations shall be reported as of the end of the plan year. ##### [965-30-35-6](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:c566e5eb49da39687cc4af2db44b7921510b764e79649818b2b6180c2b6cb624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial status of the plan considers assets and obligations as of the same date. Because [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.") are required to be presented as of the plan's year end, the benefit obligations also shall be measured and presented as of the plan's year end. That requirement does not, however, preclude the plan from using the most recent benefit obligations valuation rolled forward to the plan's year end to account for events occurring between the most recent valuation date and the plan's year end (such as employee service and benefit payments), provided that it is reasonable to expect that the results will not be materially different from the results of an actuarial valuation as of the plan's year end. In rolling forward the benefit obligations to the plan's measurement date, the discount rates shall be adjusted as appropriate to reflect current rates of return on high-quality fixed-income investments. For example, if a valuation was performed at September 30 and the plan has a calendar year end, the benefit obligations as of September 30 should be rolled forward to December 31, by making appropriate adjustments, such as for additional employee service; the time value of money; benefits paid; and changes in the number of participants, actuarial assumptions, discount rates, per capita claims costs, and plan terms. ##### [965-30-35-7](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:7b55f40ed2645521a956c16af31e01661ce7b759098050aa1c3548189cb21976 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of 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 should be included in current-period measurements for employees expected to retire after that date. #### Postemployment Benefits ##### [965-30-35-8](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:3db069f705a68b343a8dcfab3021aac7fe828bcb0ca500e20797fb4672c6b206 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [965-30-35-9](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:9197a79aa639a0e65cbe985c6f65a73516e4bb7328cfdeba3e25eaa02bc6bddb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postemployment benefit obligation shall be measured as the actuarial present value of the future benefits attributed to plan participants' services rendered to the measurement date, reduced by the actuarial present value of future contributions expected to be received from the current plan participants. That amount represents the benefit obligation that is to be funded by contributions from the plan's participating employer(s) and from existing plan assets. The obligation is to be measured assuming the plan continues in effect and all assumptions about future events are met. Any anticipated forfeitures or integration with other related programs (for example, state unemployment benefits) shall be considered. The benefit obligation shall be discounted using rates of return on high-quality fixed-income investments currently available with cash flows that match the timing and amount of expected benefit payments and expected participant contributions. ##### [965-30-35-10](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:5a54084ad8fa6f663b1d0f716717cdcbfebe32a32367374d7db8fe675fded522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When participant contributions are required after the event triggering postemployment benefits occurs (for example, employee disability, as described in paragraph [965-30-25-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-4)), the postemployment benefit obligation shall be measured in a manner consistent with paragraph [965-30-35-9](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-9). As a result, in those situations the benefit obligation shall represent the amount that is to be funded by contributions from the participating employer(s) and from existing plan assets. ##### [965-30-35-11](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:e1af1acf6f4baa6cf3e76d07c9e0cbc6cc177b2537f50c13bbc103fd66aa6aee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Accumulated Eligibility Credits ##### [965-30-35-12](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:9c2803daeb456fdc10512aa6142873b89850da65b2d955de5fb1543a9c76e1ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plans may provide for the payment of insurance premiums or benefits for a period of time for those participants who have accumulated a sufficient number of eligibility credits or hours. At the financial statement date, such accumulated eligibility credits represent an obligation of the plan arising from prior employee service for which employer contributions have been received. This benefit obligation is generally determined by applying current insurance premium rates to accumulated eligibility credits or, for a self-funded plan, by applying the average cost of benefits per eligible participant to accumulated eligibility credits. In either case, the obligation for accumulated eligibility credits shall consider assumptions for mortality and expected employee turnover or other appropriate adjustments, to reflect the obligation at the amount expected to be paid. #### Premiums Due under Insurance Arrangements ##### [965-30-35-13](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:a80addeac8d063c9192db2394b0ce8f11472dae1bb6ae2acc19d620ad983a7c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an insurance contract requires payment of additional premiums (for example, retrospective premiums) when the loss ratio exceeds a specified percentage, an obligation for the estimated additional premiums shall be included in the benefit obligations. #### Stop-Loss Arrangements ##### [965-30-35-14](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:4ee02c4364ceed9cea54fbd22b409df3b97c8ba63021c39596263ca1ef8fa423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") may be described by a variety of terms; therefore, details of all insurance or administrative arrangements should be reviewed carefully to determine if stop-loss provisions are included and to determine the specific benefit obligations assumed by the insurance entity. #### Postretirement Benefit Obligations ##### [965-30-35-15](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:c4d89d9146535a17e6e04fa221f1b56b67b70a9227228be87725a7d12ecfeb89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") may continue to provide benefits to participants after retirement (postretirement benefits). Those benefits may commence immediately upon termination of service or payment may be deferred until the participant attains a specified age. If a plan provides postretirement benefits to participants, an estimated amount for those benefits, as described in the following paragraph, shall be included in the benefit obligations. ##### [965-30-35-16](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:34f16cf9b08abf01ff1f53c2d4cd3c08f1c7364bd5db5d3c3115db1d32e434e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation as of the measurement date is the actuarial present value of all future benefits attributed to plan participants' services rendered to that date, assuming the plan continues in effect and all assumptions about future events are fulfilled. Postretirement benefits comprise benefits expected to be paid to or on behalf of any of the following who are expected to receive benefits under the health and welfare benefit plan: 1. a A retired or active participant 2. b A terminated participant 3. c A beneficiary or covered dependent. ##### [965-30-35-17](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:0845b65228b92bed1b99bed30920ea12131ac62d4db9f13dc12bbe27d5c9e44c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Postretirement benefits expected to be paid to or for any of the following who are still earning their postretirement benefits (that is, one who is not yet fully eligible) shall be measured over the participant's credited period of service up to the date when full eligibility for benefits is attained: 1. a An active participant 2. b A beneficiary 3. c A covered dependent. ##### [965-30-35-18](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:dde6646a00d5b66d89ec0857bf13d391bb4d7b61a7c18b314240ba28a4dbab42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if a participant has worked 8 years and must work another 16 to be fully eligible for benefits after retirement, one-third of the postretirement benefits have been earned and should be included in the postretirement benefit obligation if it is probable that the employee will work the remaining 16 years. ##### [965-30-35-19](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:30090878013210e3628d129db07793df108dfdf1cdeee55a54d31cc042197aed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a multi-employer health and welfare benefit plan provides postretirement benefits, the benefit obligations shall include the postretirement benefit obligation. Consideration should be given to the promises currently made to employees and the history of making such payments to retirees. The fact that benefits may be reduced or even potentially eliminated would not ordinarily affect the promise made as of the end of the plan year unless the change meets the substantive plan criteria of Subtopic 715-60 (for example, an amendment is in place or has been communicated to employees). The fact that the contributing employers of a multi-employer plan do not record a similar obligation under that Subtopic does not affect the accounting for the obligations by the plan. ##### [965-30-35-20](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:1ff03f55bdb9dd33a68e4ddbfa4ff0b6d89e632061cddcc56e47d3676913b372 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation shall be measured using the plan's written provisions to the extent possible, as well as the substantive plan if it differs from the written plan. In many health and welfare benefit plans, postretirement benefits are not defined as a specified amount for each year of service. Section 715-60-35 describes the measurement of the postretirement benefit obligation. For multi-employer plans that do not have date-of-hire information as required by paragraph [715-60-35-66](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-66), reasonable estimates thereof shall be used to measure the obligation. Death or disability benefits provided outside of a pension plan (if the employee is considered to be retired) shall also be included in the calculation of the postretirement benefit obligation. Benefits that are provided through an insurance contract shall be excluded. Insured plans shall be reviewed carefully to determine the extent to which postretirement benefits are insured. Currently, except for single-premium life insurance contracts, few, if any, insurance contracts unconditionally obligate an insurance entity to provide most forms of postretirement benefits. ##### [965-30-35-21](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:b439dbbcce5ee91615270be8a9875b7c436f08d79408b210904647c058f489a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In measuring the postretirement benefit obligation explicit assumptions shall be used, each of which represents the best estimate of a particular future event. All assumptions shall presume that the plan will continue in its present form, unless there is evidence to the contrary. Principal actuarial assumptions used shall include all of the following: 1. a Discount rates, used to reflect the time value of money in determining the present value of future cash outflows currently expected to be required to satisfy the liability in the due course of business 2. b The timing and amount of future postretirement benefit payments (taking into consideration per capita claims cost by age, health care cost-trend rates, current Medicare reimbursement rates, retirement age, dependency status, and mortality) 3. c Salary progression (for pay-related plans) 4. d The probability of payment (considering turnover, retirement age, dependency status, and mortality) 5. e Participation rates (for contributory plans). ##### [965-30-35-22](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:a2a125ebcbbb69c68bc8a139cb24251e7b06d29f5d05cc8899208428a4e06165 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation information shall include the following classifications: 1. a Obligations related to retired plan participants, including their beneficiaries and covered dependents 2. b Obligations related to active or terminated participants who are fully eligible to receive benefits 3. c Obligations related to other plan participants not yet fully eligible for benefits.