The LA Times today reports in this article–“More Pension Plan Disclosure Ordered–on FASB‘s decision to require disclosure of investment strategies which companies use for their pensions. (See previous post here.) The article reports FASB as saying that it will order the changes “as part of efforts to shine a brighter light on corporate pension programs, amid fears that many such plans may be inadequate to meet promised benefits.” The article quotes Lynn Dudley, vice president and general counsel for the American Benefits Council, who criticizes the decision by FASB on the grounds that it “could be used by employee groups to pressure companies to alter their investment strategies to suit a particular group’s purpose.” According to the article, Ms. Dudley notes that “to bow to such pressure would violate pension rules [i.e. ERISA] that require employers to be fiduciaries, acting in the best interest of all participants.”
UPDATE: Plan Sponsor reports on the proposed pension disclosure rules: “Details Emerge on FASB Pension Disclosure Proposal.”