Clarification

In the September JofA, the tax news, “IRS States Position on Hybrid Plan Arrangements” (page 88) discussed an “alternative” method employers have used to provide accident and health benefits to retirees in the context of FASB Statement no. 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions. The third and fourth paragraph referred to this method as a “proposed FASB method” when it should have read “one method, prompted by the observations in Statement no. 106, permitted retirees to apply a salary reduction agreement to their pension distributions.” The method was not directly discussed or proposed by the FASB.