June 2000 Bulletin, "AICPA Proposes Expanding the Scope of SOP 92-6"
In an Exposure Draft published earlier this year, the American Institute of Certified Public Accountants (AICPA) has proposed expanding the scope of its Statement of Position 92-6 (SOP 92-6). Most notably, it would require health plans that provide retiree health coverage to include the present value of coverage expected to be funded by retiree contributions in the obligation for post-retirement benefits that appears on their financial statements. This number would be included as an intermediate step in arriving at the bottom line. The change is not likely to have a major impact on most plan designs, although it could have a significant effect on plans with retiree pay-all coverage or defined-dollar coverage.
All of the changes proposed in the AICPA's Exposure Draft have an effective date of December 15, 2000.