Board of Governors of the Federal Reserve System

Data Dictionary

Item Number J894

Call confidentiality applies to FFIEC 031/041.

Data Description:

This account is used to recognize the funded status of defined benefit retirement plans, and other postretirement benefit plans. When the projected benefit obligation exceeds the fair value of plan assets, the difference is recorded to this liability account, as defined by FASB ASC Topic 715-20; formerly SFAS No. 87, 106, and 158. Included in this account will be balances related to (1) the nonqualified retirement Benefits Equalization Plan (BEP), (2) the Supplemental Employee Retirement Program (SERP), and (3) postretirement medical and life insurance benefit plan. Entries related to these plans are based on actuarial valuations and actual payments made by the OEB on behalf of the Reserve Banks. Monthly benefits payments made by the OEB on behalf of each Reserve Bank will offset the recorded liability for these plans. The offset to the monthly and annual accruals for the BEP and SERP plans are offset to the net periodic pension cost (330-060) or Accumulated Other Comprehensive Income (AOCI) (a subaccount of 320-025, Surplus), as required.4 The offset to the monthly and annual accruals for postretirement medical and life insurance are posted to the Operating Expense account (330-050) or AOCI, as required (see paragraph 12.33).

This account is also used to record the liabilities for the long-term disability or workers compensation plan obligations in accordance with FASB ASC Topic 712-20; formerly SFAS Topic No. 112, Employers' Accounting for Postemployment Benefits. Entries for these plans are based on actuarial valuations and actual benefit payments
made by the OEB on behalf of the Reserve Banks; the payments will offset the recorded liability for these plans. At year-end, each Reserve Bank adjusts the recorded obligations for the postemployment benefit plans, and the offset is posted to the Operating Expense account (330-050).

The liability associated with the Thrift Benefits Equalization Plan (Thrift BEP) is also recorded in this account. The Thrift BEP entries are made using information provided by the OEB at year-end based on the Plan account balance (not actuarially determined). Monthly payments made by the OEB on behalf of each Reserve Bank will offset the Thrift BEP liability. At year-end, each Reserve Bank may have to adjust the recorded obligation for the Thrift BEP, and the offset is posted to the Operating Expense account (330-050).

Effective April 2009, the liability associated with the deferred compensation plan (DCP) is also recorded in this account. The monthly DCP entries are made using information provided by the payroll system, OEB, and the third party administrator (not actuarially determined). Payments made by the OEB on behalf of each Reserve Bank will offset the DCP liability. The monthly report provided by the third party administrator should be used to verify each Bank's DCP liability account.

Significant reductions in staff or changes in pension or medical plan benefits may require the recognition of additional gains or losses. As a practical matter, Reserve Banks should coordinate with Board and OEB staff when they anticipate substantial changes to staffing or the plan benefits. The provisions of FASB ASC Topic 712-10; formerly SFAS No. 88 are applied when determining if staff reductions or benefit changes result in a plan curtailment. A percentage reduction of greater than 10% indicates a curtailment. If a percentage reduction of expected future working lifetime is less than 5%, no curtailment is deemed to have occurred. A determination of the existence of a curtailment for a percentage reduction between 5-10% is based on individual facts and circumstances of the events. Reserve Banks should work with Board staff in evaluating whether a curtailment exists.

Note that the liabilities for active medical expenses are not reflected in this account.