文档介绍：Session 39 – Workshop: Analyzing Defined Benefit Pension Plans & Postretirement Benefits
Greg Clifton
VP/Senior Analyst
Moody’s Investors Service
1
Rating Methodology
2
Cash Flow Considerations
Pension plans
Understand contribution requirements
Rough estimate can be made with SFAS 87 information
Due to undisclosed credits, panies may not face large contribution requirements for several years
Can be offset by contributing stock
OPEB
Primary focus on benefits paid (recorded on “pay-as you-go” basis)
Can obtain benefits paid information in the rollforward of the APBO
Can analyze growth in:
Net periodic postretirement cost
Benefit payments
Can use above rates to project future benefit payments
3
Balance Sheet
Adjustments:
For pensions
Recorded Debt Per Balance Sheet
+ Add: Off-balance sheet liabilities (., lease obligations, guarantees)
+ Add: Net underfunded PBO from notes to financial statements
= Adjusted Debt
OPEB – may include the underfunded amount of the APBO in adjusted debt in certain circumstances
4
e Statement
As Adjusted By Moody’s:
Service cost (no adjustments)
Interest cost (adjusted only if Moody’s disagrees with discount rate)
Amortization of prior service cost (Not used)
actuarial gains (Not used)
Amortization of transition asset (Not used)
Actual losses on plan assets, or Actual gains up to the amount of interest cost
= Periodic Pension/OPEB cost
5
Financial Statement Information – A Closer Look
6
Pension Plan Funded Status
Financing cost
of the plan
Changes in actuarial
assumptions (.
attrition, retirement,
mortality,
discount p.
Increase rates)
PBO: Projected
benefit obligation.
PV of benefits earned
to date incl. projected
salary increases
Economic position of
the firm's pension
plans = Fair value of
plan assets - PBO
Actuarial present
value of benefits
earned during
the current period
(by virtue of having
worked another year)
7
BS and IS Reporting
Economic position of the firm's pension plans