Pensions - Articles - Accounting for Pensions and Other Postretirement Benefits

 This report summarizes the assumptions used by Fortune 1000 companies in the calculation of pension expense and obligations, the disclosure of pension assets and obligations under ASC 715, and disclosures regarding postretirement benefits other than pensions, primarily retiree health and life insurance benefits.

 This summary report is the 24th in a series by Towers Watson of annual analyses of pension disclosures and the 18th summary report to analyze postretirement disclosures.

 Key findings are:

 For FY 2010, the discount rate used to calculate the present value of pension obligations ranges from 3.60% to 6.50%.
 The expected rate of return on pension plan assets ranges from 4.38% to 10%. The average value of the expected rate of return is 7.87%.
 At the end of 2010, 52% of companies had a projected benefit obligation (PBO) funded status of less than 80%. This represents an improvement from the prior year.
  

 Download the complete report below.