On June 29, the Financial Accounting Standards Board held the second-to-last vote on its multiemployer benefit plan disclosure proposals that have threatened our industry for the past year. The original over-broad and damaging proposal has now been significantly pared back to a constructive compromise that achieves FASB's aims of increasing disclosure, while at the same time avoiding the damaging collateral consequences and unnecessary expense and burden on participating employers. In summary: 1) Routine annual disclosure of withdrawal liability in the absence of "probable" withdrawal has now been removed from consideration; 2) FASB continues to use the
compromise disclosure table, called Alternative 1, as the basis for any final outcome; 3) Substantially damaging and expensive disclosure Options 2, 3, and 4 from FASB's May 31st meeting have been removed; and 4) Disclosures pertaining to health and welfare plans offering retiree health care have been removed from consideration. FASB will hold its final meeting and vote on its new accounting standard later in July. At that meeting, FASB will also settle on remaining "qualitative" disclosures. Barring any unexpected change in direction, it appears there will be no additional burden on private or public companies, and that the final accounting standard will be published this year and slated for effect perhaps next year.