Question

Saver Corporation amended its defined benefit pension plan at the beginning of its 2011 fiscal year, resulting in past service costs of $775,000. The vesting period for Saver Corporation is seven years. The plan amendment is attributable to the following employees:
Employees with more than seven years’ service as at Jan. 1, 2011....$475,000
Employees with less than seven years’ service as at Jan. 1, 2011...$300,000
The average period until vesting for the employees with less than seven years’ experience is 3.5 years. Calculate the past service cost that will be included in the fiscal 2011 pension expense.


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  • CreatedAugust 23, 2015
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