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2nd Quarter 2009

Final FASB Disclosure of More Asset Classes Held in Pension and Postretirement Benefit Plans
Excerpt: “The Financial Accounting Standards Board (FASB) on December 30, 2008, finalized revisions to FASB Statement # 132, Employers’ Disclosures about Pensions and Other Postretirement Benefits. The revisions are effective for fiscal years ending after December 15, 2009, and are found in

Quote of the Quarter: “If you wait for   opportunities to  occur, you will be one of the crowd.”

Edward de Bono, Psychiatrist & Author

Expert discusses Medicare coverage.  In the Wall Street Journal (2/21) Ask Encore column, Kelly Greene wrote that, according to Paul Precht, policy director for the nonprofit Medicare Rights Center in Washington, older Americans “must sign up for Medicare Part B any time in a seven-month window — three months before” their “65th birthday, the month” of their “birthday, or three months after — to avoid future penalties.” He noted that “there are a few exceptions in which people with retiree health coverage mightn’t have to sign up for Part B, including if you have health insurance from an HMO under the Federal Employees Health Benefit Program.” When people “have retiree health-insurance coverage, it generally kicks in after Medicare parts A and B. .. Retiree health coverage may help pay for Medicare costs, or for things that Medicare doesn’t cover.” Nevertheless, retirees “need to enroll in Part A and B to have full insurance coverage. Many retiree policies require” that people “sign up for parts A and B, anyway, so it is important to check that with…former employers.” Meanwhile, retirees “can skip Medicare Part D, which provides drug coverage, if’ they “have coverage through an ex-employer that’s good or better than Medicare’s.”

Indexed Medicare Part D Amounts for 2010
Excerpt: “The Centers for Medicare & Medicaid Services (CMS) has announced the indexed Medicare Part D standard benefit and Retiree Drug Subsidy (RDS) amounts for 2010. This Capital Checkup features charts comparing the 2010 numbers and the 2009 numbers.” (The Segal Group, Inc.\

Options to Remove Liabilities for High Retiree Medical Costs from a Company’s Balance Sheet: VEBAs (PDF)
2 pages. Excerpt: “The creation and structuring of the VEBA must fulfill a number of legal requirements all of which are normally manageable. Depending upon how the retiree medical VEBA is to be funded, there are a number of other approvals that may be required and SEC filings that must be made for companies with registered securities if the settlement agreement is a ‘material agreement.’ Further, the VEBA will allow for different accounting treatments of the change. If the company has securities registered with the Securities Exchange Commission, the company’s accounting treatment can be verified by obtaining approval of the proposed accounting treatment through the office of the Chief Accountant at the SEC and the appropriate Counsel’s office.” (Haynes & Boone)

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