CAWP and AGC File Comments on FASB Multiemployer Disclosure Draft

CAWP, CAWP Contractor Members, and AGC submitted comments on the Financial Accounting Standards Board’s (FASB) proposed accounting standard that would require the disclosure of withdrawal liability from multiemployer pension plans on company financials. The comments urge FASB to withdraw the Exposure Draft and reconsider the proposal. In addition, CAWP and AGC signed on to a business community letter led by the U.S. Chamber of Commerce

The industry’s concerns over the Exposure Draft were extensive and included the following:
• Under-appreciates the costs associated with compliance and overestimates the relevancy of the information that would need to be provided
• Underestimates the complexity of the relationship between employers and multiemployer plans, as well as the importance of the construction industry exemption that makes almost any liability merely theoretical rather than material.

Due to the number of negative comment letters received, FASB has decided to defer further deliberations on the project. It has indicated plans to hold further deliberations next year.