Federal bank regulators made an interim decision that
FASB Statement no. 158, Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans, will not affect banking
organizations’ regulatory capital. Pending further action by the
Federal Reserve Board, FDIC, Office of the Comptroller of the Currency
and Office of Thrift Supervision, bank holding companies and savings
associations should exclude from regulatory capital any amounts
recorded in accumulated other comprehensive income (AOCI) resulting
from the application of Statement no. 158.
The standard requires organizations that sponsor defined benefit postretirement plans to recognize the overfunded or underfunded status of each such plan as an asset or liability on their balance sheet with corresponding adjustments in AOCI. For additional guidance, visit www.federalreserve.gov/boarddocs/reportforms/supplemental/SI_FRY9_200612.pdf .
