Standards Board

As though the American economy didn’t have enough problems, the actions of the Federal Accountancy Standards Board (“Obscure Accounting Panel Wields Vast Fiscal Power,” Feb. 3) seemed like a deliberate attempt to throw a monkey wrench into our fragile health care system. The board decided about a year ago that every corporation that supplied health care insurance for retirees would have to account for the money that was pledged for every current and retired employee in financial statements.

The result was predictable! General Motors had to acknowledge liability of over $20 billion and other corporations faced similar unexpected burdens. As a result every company is trying to escape obligations for health care insurance at a time when the government has acknowledged that this coverage is needed for everyone.

When the proposals of the FASB were first announced the California Senior Legislature advanced a proposal to Congress that the new regulation be modified to leave the requirement dormant until a universal health care program was adopted or to require that the buildup of the trust fund be applied only to the new credits that were being accumulated by employees. Unfortunately, the CSL proposal never reached the proper elected officials. The FASB has been irresponsible and its actions have resulted in great harm.

DANIEL COHEN, Senior Assemblyman

California Senior Legislature

Santa Monica