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Difference between Settlement and Curtailment in Pension Plan?

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On occasion, an employer may end a pension plan. When a plan is ended, it is a pension plan settlement; the obligation to the pensionable group is settled by transferring assets to a trustee, and any deficiencies in funding are remedied.
If the settlement is partial, which means the pension plan continues but a company decides to down-size the company which results in lay off employees, this is called curtailment.

Gains and losses that arise from settlement or curtailment are not subject to amortization. Settlements relate to employees who are no longer with the company and Average Remaining Service Period (ARSP) is zero, gains and losses are recognized immediately.
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