Batch Co. employs knowledge workers and is finding that its employees retire closer to age 75 than 65. As a result, they recently modified their defined benefit pension plan so that benefits will begin at age 72, with certain exceptions for those employees. demonstrating an earlier need, rather than at age 60. Batch Co. has been able to measure the actuarial present value of this amendment, which is the change in projected benefit obligation (PBO) that results from the change.

How will this affect pension expenses in current and future periods?

Answer rating: 100% (QA)

Modifying the defined benefit pension plan to begin benefits at age 72 instead of age 60 will have a... View the full answer