Naic Blanks (E) Working Group s8

NAIC BLANKS (E) WORKING GROUP

Blanks Agenda Item Submission Form

DATE: 02/25/2015
CONTACT PERSON:
TELEPHONE:
EMAIL ADDRESS:
ON BEHALF OF:
NAME: Dale Bruggeman
TITLE: Chair SAPWG
AFFILIATION: Ohio Department of Insurance
ADDRESS: 50W. Town St., 3rd Fl., Ste. 300
Columbus, OH 43215 / FOR NAIC USE ONLY
Agenda Item # 2015-10BWG
Year 2015
Changes to Existing Reporting [ X ]
New Reporting Requirement [ ]
REVIEWED FOR ACCOUNTING PRACTICES AND PROCEDURES IMPACT
No Impact [ X ]
Modifies Required Disclosure [ ]
DISPOSITION
[ ] Rejected For Public Comment
[ ] Referred To Another NAIC Group
[ X ] Received For Public Comment
[ ] Adopted Date
[ ] Rejected Date
[ ] Deferred Date
[ ] Other (Specify)

BLANK(S) TO WHICH PROPOSAL APPLIES

[ X ] ANNUAL STATEMENT [ ] QUARTERLY STATEMENT

[ X ] INSTRUCTIONS [ ] CROSSCHECKS [ ] BLANK

[ X ] Life and Accident & Health [ X ] Property/Casualty [ X ] Health

[ ] Separate Accounts [ X ] Fraternal [ X ] Title

[ ] Other Specify

Anticipated Effective Date: Annual 2015

IDENTIFICATION OF ITEM(S) TO CHANGE

Modify the instructions and illustration for Note 12, Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans, to reflect changes adopted by the Statutory Accounting Principles Working Group for SSAP No.11, Postemployment Benefits and Compensated Absences.

REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**

The purpose of this proposal is to modify the disclosure in Note 12, Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans, to reflect changes adopted by the Statutory Accounting Principles Working Group for SSAP No.11, Postemployment Benefits and Compensated Absences.

NAIC STAFF COMMENTS

Comment on Effective Reporting Date:

Other Comments:

** This section must be completed on all forms. Revised 6/13/2009

ANNUAL STATEMENT INSTRUCTIONS – LIFE, HEALTH, PROPERTY, FRATERNAL AND TITLE

NOTES TO FINANCIAL STATEMENTS

Detail Eliminated To Conserve Space

12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans

The disclosures required for this Note shall be aggregated for all of a reporting entity’s defined benefit pension plans and for all of a reporting entity’s other defined benefit postretirement plans unless disaggregating in groups is considered to provide useful information or is otherwise required by SSAP No. 92, Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14 or SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. Disclosures shall be as of the date of each statement of financial position presented. Disclosures about pension plans with assets in excess of the accumulated benefit obligation generally may be aggregated with disclosures about pension plans with accumulated benefit obligations in excess of assets. The same aggregation is permitted for other postretirement benefit plans. If aggregate disclosures are presented, a reporting entity shall disclose:

· The aggregate benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets as of the measurement date of each statement of financial position presented.

· The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets.

Refer to SSAP No. 11, Postemployment Benefits and Compensated Absences; SSAP No. 92, Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14; and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89, for additional guidance.

Instruction:

A. Defined Benefit Plan

Disclose the following regarding a reporting entity sponsoring a Defined Benefit Plan for which the reporting entity is directly liable (i.e., the plan resides directly in the reporting entity):

(1) A reconciliation of beginning and ending balances of the benefit obligation for pension benefits, postretirement benefits, and special or contractual termination benefits showing separately, if applicable, the effects during the period attributable to each of the followingbelow. (For special or contractual termination benefits see SSAP No. 11, Postemployment Benefits and Compensated Absences for additional information.):

· Beginning balance

· Service cost

· Interest cost

· Contributions by plan participants

· Actuarial gains and losses

· Foreign currency exchange rate changes

· Benefits paid

· Plan amendments

· Business combinations, divestitures, curtailments, settlements, and special termination benefits

· Ending balance

(2) A reconciliation of beginning and ending balances of the fair value of plan assets for pension benefits, postretirement benefits, and special or contractual termination benefits showing separately, if applicable, the effects during the period attributable to each of the followingbelow. (For special or contractual termination benefits see SSAP No. 11, Postemployment Benefits and Compensated Absences for additional information.):

a. Fair value of plan assets at beginning of year

b. Actual return on plan assets

c. Foreign currency exchange rate changes

d. Contributions by the reporting entity

e. Contributions by plan participants

f. Benefits paid

g. Business combinations, divestitures, and settlements

h. Fair value of plan assets at end of year

(3) The funded status of the plans, the amounts recognized in the statement of financial position, showing separately the assets (nonadmitted) and liabilities recognized.

(4) The amount of net periodic benefit cost recognized for pension benefits, postretirement benefits, and special or contractual termination benefits, showing separately each of the below. (For special or contractual termination benefits see SSAP No. 11, Postemployment Benefits and Compensated Absences for additional information.):

a. Service cost

b. Interest cost

c. Expected return on plan assets for the period

d. Transition asset or obligation

e. Gains and losses

f. Prior service cost or credit

g. Gain or loss recognized due to a settlement or curtailment

h. Total net periodic benefit cost

(5) Separately the net gain or loss and net prior service cost or credit recognized in unassigned funds (surplus) for the period and reclassification adjustments of unassigned funds (surplus) for the period, as those amounts, including amortization of the net transition asset or obligation, are recognized as components of net periodic benefit cost.

Detail Eliminated To Conserve Space

Illustration:

A. Defined Benefit Plan

The Company sponsors non-contributory defined benefit pension plans covering U.S. employees. As of December 31, 20__, the Company accrued in accordance with actuarially determined amounts with an offset to the pension cost accrual for the incremental asset amortization.

A summary of assets, obligations and assumptions of the Pension and Other Postretirement Benefit Plans are as follows at December 31, 20___ and 20___:

THIS EXACT FORMAT MUST BE USED IN THE PREPARATION OF THIS NOTE FOR THE TABLE BELOW. REPORTING ENTITIES ARE NOT PRECLUDED FROM PROVIDING CLARIFYING DISCLOSURE BEFORE OR AFTER THIS ILLUSTRATION.

(1) Change in benefit obligation

Detail Eliminated To Conserve Space

c. Special or Contractual Benefits Per SSAP No. 11Postemployment & Compensated Absence Benefits

Overfunded Underfunded

20__ 20__ 20__ 20__

1. Benefit obligation at beginning of year $ $ $ $

2. Service cost $ $ $ $

3. Interest cost $ $ $ $

4. Contribution by plan participants $ $ $ $

5. Actuarial gain (loss) $ $ $ $

6. Foreign currency exchange rate changes $ $ $ $

7. Benefits paid $ $ $ $

8. Plan amendments $ $ $ $

9. Business combinations, divestitures, curtailments, settlements and special termination benefits $ $ $ $

10. Benefit obligation at end of year $ $ $ $

THIS EXACT FORMAT MUST BE USED IN THE PREPARATION OF THIS NOTE FOR THE TABLE BELOW. REPORTING ENTITIES ARE NOT PRECLUDED FROM PROVIDING CLARIFYING DISCLOSURE BEFORE OR AFTER THIS ILLUSTRATION.

(2) Change in plan assets

Postemployment

Pension Postretirement Special or Contactual

Benefits Benefits Benefits Per SSAP No 11

20__ 20__ 20__ 20__ 20__ 20__

a. Fair value of plan assets at beginning of year $______$______$______$______$______$______

b. Actual return on plan assets $______$______$______$______$______$______

c. Foreign currency exchange rate changes $______$______$______$______$______$______

d. Reporting entity contribution $______$______$______$______$______$______

e. Plan participants’ contributions $______$______$______$______$______$______

f. Benefits paid $______$______$______$______$______$______

g. Business combinations, divestitures and settlements $______$______$______$______$______$______

h. Fair value of plan assets at end of year $______$______$______$______$______$______

Detail Eliminated To Conserve Space

THIS EXACT FORMAT MUST BE USED IN THE PREPARATION OF THIS NOTE FOR THE TABLE BELOW. REPORTING ENTITIES ARE NOT PRECLUDED FROM PROVIDING CLARIFYING DISCLOSURE BEFORE OR AFTER THIS ILLUSTRATION.

(4) Components of net periodic benefit cost

Postemployment

& Compensated

Absence Benefits

Pension Postretirement Special or Contactual

Benefits Benefits Benefits Per SSAP No 11

20__ 20__ 20__ 20__ 20__ 20__

a. Service cost $______$______$______$______$______$______

b. Interest cost $______$______$______$______$______$______

c. Expected return on plan assets $______$______$______$______$______$______

d. Transition asset or obligation $______$______$______$______$______$______

e. Gains and losses $______$______$______$______$______$______

f. Prior service cost or credit $______$______$______$______$______$______

g. Gain or loss recognized due to a settlement or curtailment $______$______$______$______$______$______

h. Total net periodic benefit cost $______$______$______$______$______$______

THIS EXACT FORMAT MUST BE USED IN THE PREPARATION OF THIS NOTE FOR THE TABLE BELOW. REPORTING ENTITIES ARE NOT PRECLUDED FROM PROVIDING CLARIFYING DISCLOSURE BEFORE OR AFTER THIS ILLUSTRATION.

(5) Amounts in unassigned funds (surplus) recognized as components of net periodic benefit cost

Pension Benefits Postretirement Benefits

20__ 20__ 20__ 20__

a. Items not yet recognized as a component of net periodic cost – prior year $ $ $ $

b. Net transition asset or obligation recognized $ $ $ $

c. Net prior service cost or credit arising during the period $ $ $ $

d. Net prior service cost or credit recognized $ $ $ $

e. Net gain and loss arising during the period $ $ $ $

f. Net gain and loss recognized $ $ $ $

g. Items not yet recognized as a component of net periodic cost – current year $ $ $ $

Detail Eliminated To Conserve Space

QUARTERLY STATEMENT INSTRUCTIONS – LIFE, HEALTH, PROPERTY, FRATERNAL AND TITLE

NOTES TO FINANCIAL STATEMENTS

Detail Eliminated To Conserve Space

12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans

· The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets.

Instruction:

a. Service cost

b. Interest cost

c. Expected return on plan assets for the period

d. Transition asset or obligation

e. Gains and losses

f. Prior service cost or credit

g. Gain or loss recognized due to a settlement or curtailment

h. Total net periodic benefit cost

Illustration:

A. Defined Benefit Plan

(4) Components of net periodic benefit cost

Postemployment

& Compensated

Absence Benefits

Pension Postretirement Special or Contactual

Benefits Benefits Benefits Per SSAP No 11

20__ 20__ 20__ 20__ 20__ 20__

a. Service cost $______$______$______$______$______$______

b. Interest cost $______$______$______$______$______$______

c. Expected return on plan assets $______$______$______$______$______$______

d. Transition asset or obligation $______$______$______$______$______$______

e. Gains and losses $______$______$______$______$______$______

f. Prior service cost or credit $______$______$______$______$______$______

g. Gain or loss recognized due to a settlement or curtailment $______$______$______$______$______$______

h. Total net periodic benefit cost $______$______$______$______$______$______

Detail Eliminated To Conserve Space

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