Explore the FASB Codification sections related to pensions

Explore the FASB Codification sections related to pensions (plan accounting) (§960, 962 & 965). Identify one concept that you did not know prior to completing this research and share it with the class, citing the code section. Identify one question that has arisen as you have explored pensions in the Codification, and post this question as well. Participate in follow-up discussion by challenging or defending the methods as explained by your classmates, or answering their questions. Your initial post should be 250-500 words, and should demonstrate solid academic writing skills.

I reviewed over the FASB codification regarding pensions and there are a lot of new things I have learned. I never really looked into pensions because I don’t think it really applied to me. However, it applies to everyone. We want to make sure that we are working to be able to retire and have a sufficient income that is coming in that was put away during the time we were working. FASB Codification 960-20-20, it explained what defined benefit plan. There are a few plans that are listed; defined health and welfare plans, pension plans, and post retirement plans. Pension plans are where it confuses me due to how each company has them set up. For example, I have only heard about 401K that are set up through works. However, some companies don’t offer pensions. For instance, I find that working at a small restaurant usually doesn’t offer pension plans or retirement plans. But, that does not mean that is how it is for everyone. We each have a choice if we want to contribute to a 401K. The main difference would be the amount that would be matched by the company. My old job would match the same amount I contributed after staying at the job for 2 years. That is something that would be gained along the way. It was definitely a positive incentive. Although, some companies do not match the amount that is put into my 401K. Have you been to a place where they didn’t offer any benefits to the employees? Or it can even be too expensive to purchase. Please let me know.