Exercise 17-1 (Static) Changes in the PBO [LO17-3] Indicate by letter whether each of the events listed below increases (1), decreases (D), or has no effect (N) on an employer's projected benefit obligation. Events 1. Interest cost. 2. A decrease in the average life expectancy of employees. 3. A decrease in the final salary estimate of employees. 4. A plan amendment that increases benefits is made retroactive to prior years. 5. Cash contributions to the pension fund by the employer. 6. Benefits paid to retired employees. 7. Service cost. 8. Actual return on plan assets.