US Board Solicits Input on Hybrid Retirement Accounting Proposal

The US accounting board wants public input on how companies should account for an increasingly popular hybrid retirement plan in their financial reports.

The Financial Accounting Standards Board published a draft plan Wednesday focused on financial reporting for certain market-return cash balance plans. While these savings vehicles bear similarities to 401(k) plans, they can offer increased funding flexibility and come with higher contribution limits.

The board added a project to its agenda in January after its emerging issues advisory group suggested updating the US accounting rulebook to better reflect such defined benefit retirement plans.

Cash balance plans are growing ...