curtailment in pension plan

Dictionary of Accounting Terms for: curtailment in pension plan
curtailment in pension plan

materially reducingthe expected years of future services of current employees or eliminating for a significant number of employees the accrual of defined benefits for some or all of their future services. Immediate recognition is given to the gain or loss upon curtailment. The components of the gain or loss include (1) unamortized prior service pension costapplicable to employee service no longer needed and (2) change in projected benefit obligationoccurring from the curtailment.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.