What does ARSP stand for?

The prior-service costs are amortized on a straight-line basis over the average remaining service period of active participants.

8) For those employers who choose the second alternative, Delayed Recognition, the transition amount must be amortized on a straight-line basis over the average remaining service period of active plan participants.

Amortization of the transition obligation will vary by the average remaining service period used to amortize the obligation.

According to the FASB, the transition obligation would be amortized to expense over future years on a straight-line basis over the average remaining service period (to the date of expected retirement) of active employees expected to receive a benefit.

The excess of the net accumulated actuarial gain (loss) over 10% of the greater of the benefit obligation and the fair value of plan assets is amortized over the average remaining service period of active employees.

This obligation can be immediately recognized in income or amortized over the average remaining service period to retirement.

Employers choosing delayed recognition must amortize the transition amount on a straight-line basis over the average remaining service period of active plan participants unless.

The excess of any cumulative net actuarial gain (loss) over 10 per cent of the greater of the benefit obligation and the fair value of plan assets is deferred and amortized over the average remaining service period of active employees, except for early retirement offerings at Newfoundland Power which are being amortized on a straight-line basis over 10 years in accordance with the requirements of the PUB.