Froogle | ASOP 4 | Commentary to Section 1

ASOP 4
(MEASURING PENSION OBLIGATIONS AND DETERMINING PENSION PLAN COSTS OR CONTRIBUTIONS)
SECTION to Section 1
(COMMENTS & RESPONSES ON SECTION 1 OF THE EXPOSURE DRAFT)

Intro to the ASOP Commentary

ASOP 4 | INTRO TO THE ASOP COMMENTARY

The third exposure draft of the proposed revision of ASOP No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, was approved in June 2021 with a comment deadline of October 15, 2021. Seven comment letters were received, some of which were submitted on behalf of multiple commentators, such as by firms or committees. For purposes of the appendix, the term “commentator” may refer to more than one person associated with a particular comment letter. The Pension Committee carefully considered all comments received, and the ASB reviewed (and modified, where appropriate) the changes proposed by the Pension Committee.

Summarized below are the significant issues and questions contained in the comment letters and the responses to each. Minor wording or punctuation changes that were suggested but not significant are not reflected in the appendix, although they may have been adopted.

The term “reviewers” in the appendix includes the Pension Committee and the ASB. Also, the section numbers and titles used in the appendix refer to those in the third exposure draft.

GENERAL COMMENTS

Comment	Response
One commentator recommended that ASOP No. 4 explicitly recognize and state that many provisions would not apply to small defined benefit plans.	The reviewers disagree and made no change.

Commentary on Section 1

ASOP 4 | Commentary Section 1.2 | COMMENT ON SECTION 1.2

Section 1.2, Scope
Comment	Response
One commentator suggested a reference to ASOP No. 56, Modeling, be added to the scope section.	The reviewers disagree and made no change in response to this comment. The reviewers note the paragraph in scope addresses potential conflicts with pension-related ASOPs that provide guidance directly related to this standard. The reviewers also note that a reference to ASOP No. 56 was added to section 3.2.

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