To All State Member Banks and Bank Holding Companies
in the Second Federal Reserve District:
The federal bank and thrift regulatory agencies have announced an interim decision that the Statement of Financial Accounting Standards No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans (FAS 158), will not affect banking organizations’ regulatory capital.
Until the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift Supervision determine otherwise through a rulemaking, banks, bank holding companies and savings associations should exclude from regulatory capital any amounts recorded in accumulated other comprehensive income (AOCI) resulting from the adoption and application of FAS 158.
FAS 158 will require, as early as December 31, 2006, a banking organization that sponsors a single-employer defined benefit postretirement plan, such as a pension plan or health care plan, to recognize the overfunded or underfunded status of each such plan as an asset or liability on its balance sheet with corresponding adjustments recognized in AOCI, a component of equity capital.
See the Board’s press release for full details.
Press release 
Statement of Financial Accounting Standards No. 158
Public Information
general.info@ny.frb.org
(212) 720-6130
