FASB Proposes Clarifications Related to Discount Rate Used to Measure the Benefit Obligation for Certain Market-Return Cash Balance Plans

The FASB has issued a proposed Accounting Standards Update (ASU) that would clarify the guidance in ASC 715-30 on the discount rate used to measure the benefit obligation for certain market-return cash balance plans. The purpose of the proposed ASU is to “reduce diversity in practice” and “better reflect the economics of [certain] market-return cash balance plans” that are within the scope of the proposed amendments. The proposed amendments would require entities to measure the benefit obligation by using the same rate used to project growth in participants’ hypothetical account balances (i.e., the assumed interest crediting rate).

For more information, see Deloitte’s June 11, 2026, Heads Up as well as the press release on the FASB’s Web site.