Question

Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employer's projected benefit obligation.

Events
_____1. Interest cost.
_____2. Amortization of prior service cost.
_____3. A decrease in the average life expectancy of employees.
_____4. An increase in the average life expectancy of employees.
_____5. A plan amendment that increases benefits is made retroactive to prior years.
_____6. An increase in the actuary's assumed discount rate.
_____7. Cash contributions to the pension fund by the employer.
_____8. Benefits are paid to retired employees.
_____9. Service cost.
_____10. Return on plan assets during the year is lower than expected.
_____11. Return on plan assets during the year is higher than expected.



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  • CreatedJuly 05, 2013
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