Dictionary of Accounting Terms: 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.
