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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. Transition amounts (unrecognized net asset or obligation at date of application of FAS 106) may be expensed immediately as a cumulative change or be amortized over the average remaining service period of active plan participants. A company must resolve whether the writeoff should be recognized immediately or amortized over the average remaining service period of plan participants, which for most employers will be about 20 years. |
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