The actuarial valuation and accounting for defined benefit pension plans involve a number of different estimates. For each of the following changes in assumptions, identify the likely effect on the amount of pension expense in the current period (increase, decrease, or no effect). For this question, ignore the requirement to use the same rate for return on assets and interest on obligations.

Change in assumption a. Increase expected return on assets b. Increase life expectancy c. Increase interest rate on pension obligations d. Increase age of retirement when employees become eligible for retirement benefits Effect on pension expense