Emerging Accounting Issues Working Group

INT 2013-03: Clarification of OPEB and Pension Transition Surplus Deferral (Adopted interpretation for SSAP No. 92 and 102)
The accounting issue is whether a surplus benefit was intended to be allowed for pension/OPEB activities when an unrecognized pension/OPEB liability exists. On November 20, 2013 the Working Group voted to expose via email a draft interpretation indicating that the guidance in SSAP No. 92 and SSAP No. 102 was not intended (on a net basis for each plan) to result in more favorable, subsequent surplus pension/OPEB positions when there are remaining unrecognized liabilities as a result of the reporting entity's initial election for surplus deferral.  

In response to inconsistencies contained within the SSAP and the Issue Paper relating to the effect on surplus for changes to the transition liability as calculated in years subsequent to 1.1.2013, the interpretation clarified that the effect on surplus for subsequent years is intended to be surplus neutral and will not result in a surplus benefit. The complete Interpretation from the meeting minutes is available from the NAIC or contact your Eide Bailly representative.

INT 13-04: Accounting for the Risk Sharing Provisions of the Affordable Care Act
Exposed for comment, the proposed interpretation relating to the SAPWG agenda item 2013-28 Risk Sharing Provisions of the Affordable Care Act. The interpretation discusses which SSAP applies to each provision and also clarifies that the 90-day admission rule for the related receivables will begin at the due date for the payment, not at the initial estimated accrual. The complete Interpretation from the meeting minutes is available from the NAIC or contact your Eide Bailly representative.