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What should you do now to prepare for expanded disclosures regarding participation in Union pension plans?


If you employ union workers, chances are you are already aware of the upcoming changes to how that participation will change your reviewed or audited financial statements.  What you may not know is when that change becomes effective, and what you should do about it now.

For non-public companies, the change is effective if your fiscal year ends on or after December 15, 2012.  This is particularly relevant because the disclosures must be comparative in form, thus pension activity at December 31, 2011 must be disclosed as well.  For each multiemployer plan you participate in, you will need to know the following things as of December 31, 2011, to be disclosed with your December 31, 2013 financial statements:

–          The Certified Zone Status of each plan at December 31, 2011
–          If the plan is under an Improvement or Rehabilitation Plan
–          Expiration dates of the related collective bargaining agreement
–          Contributions made to each plan participated in for the year ended December 31, 2011

We advise clients to begin working early with union representatives to obtain this information.  For plans that do not have publicly available information (a defined Certified Zone Status as defined by the Pension Protection Act), there are even further disclosures required regarding funding status and actuarial present value of plan benefits.

For additional information – http://www.journalofaccountancy.com/Web/20114606.htm