Sreoshi Sarkar, Nitika Goendi, Saurabh Kumar

Transcript:Sreoshi Sarkar, Nitika Goendi, Saurabh Kumar:
Sreoshi Sarkar, Nitika Goendi, Saurabh Kumar Deloitte Consulting 2nd TechTalk on Employee Benefits- ACTUARIAL VALUATIONS UNDER US-GAAP October 31, 2020 1700 - 1830 IST Polling Question 1 www.actuariesindia.org How would you rate your knowledge on pension valuations under US GAAP? US GAAP ….sorry, what is that? I have some fundamental knowledge I am at an intermediate level I consider myself an expert What to Expect www.actuariesindia.org Employee Defined Benefit landscape in US www.actuariesindia.org Employee Defined Benefit Landscape in US www.actuariesindia.org Defined Benefit (DB) Pension Plans: A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service Defined Benefit Pension: Flat Dollar Plan – Set dollar amount for each year you work for the employer Final Average Pay Plan – Benefit is calculated using average earnings leading up to retirement Career Average Pay Plan– Benefit is calculated based on average earnings during the entire period you were a member of the plan Cash Balance Plan – Participants receive a set percentage of their yearly compensation plus interest charges until retirement, which they can convert into an annuity at retirement or take a lump sum Post Retirement Medical and Life Insurance Plans: These are other than pension benefits which retirees receive post employment Supplemental Executive Retirement Plan (SERP): SERP is a set of benefits that is available to top-level employees in addition to those covered in the company's standard retirement savings plan. Multiemployer Plans: A multiemployer plan is a pension plan created through an agreement between two or more employers and a union. The employers are usually in the same or related industries, like construction or transportation. Relevant Codifications www.actuariesindia.org Relevant Codifications www.actuariesindia.org ASC 715 Compensation — Retirement Benefits 715-10 Overall: ASC 715-10 discusses the overall scope of ASC 715 and the other Subtopics within ASC 715 715-20 Defined Benefit Plans—General: ASC 715-20 notes that it “provides guidance on the disclosure and other accounting and reporting requirements related to single-employer DB pension and other postretirement benefit plans 715-30 Defined Benefit Plans—Defined Benefit Pension: This Subtopic focuses on an employer’s accounting for a single-employer DB pension plan. 715-60 Defined Benefit Plans—Other Postretirement: A postretirement benefit is part of the compensation paid to an employee for services rendered. 715-70 Defined Contribution plans