I have 3 DB plans in a controlled group that merge mid-year ( i.e. it's not a business purchase situation).

For FASB 87 purposes would you just take the results of 3 separate developments of NPPC and Disclosure items and then just combine like-kind items ?

Or is there special treatment of certain items ( e.g. unrecognized gains and losses) ?

Also, if one of the plans experienced a large settlement before the merger, would this have an impact on the accounting ?

It seems too simple to just add together similar items .

I have merged plans (within a controlled group) at year end and did take the separate result calculations and combine like items. I do not see any reason not to combine unrecognized gains and losses of each former plan.

I don't believe that a mid-year merger should be handled differently.

The only caution that I would add would be to make sure you use the combined plan pbo and assets in the determination of the 10% corridor for gain/loss amortization (versus performing the amortization calculation on each of the formerly separate plans, then combining).

I don't think the settlement prior to the merger should impact this transaction. Presumably, that would be taken into effect in the determination of each plan's funded status immediately prior to the merger.

Hope this helps.

thanks baxjac - helps alot !! - and I'll note the tip on the corridor !!

Happy New Year !!