Match the correct definition letter with each term number.

Question 23 options:

12345678	settlement interest rate
12345678	pension fund
12345678	vested benefits
12345678	service cost
12345678	net periodic pension expense
12345678	PBO
12345678	actuarial present value
12345678	accumulated benefit obligation

1.	a component of net periodic pension expense representing the actuarial present value of benefits accruing to employees for services rendered during that period
2.	used to compute the interest component of net periodic pension expense and is used to discount projected and accumulated benefit obligations to their present values; the rate implicit in the current prices of annuity contracts that could be purchased to settle the benefits owed to employees; the SEC has suggested that the appropriate one is the return on highly rated fixed income debt securities
3.	amounts set aside to meet the employers future pension obligation
4.	the actuarial present value of pension benefits based on the plan formula for employee service earned to date using the existing salary structure; used to compute the minimum liability
5.	the present value of pension obligations determined by using stated actuarial assumptions and estimates
6.	the actuarial present value of pension benefits using the benefits/years of service approach that requires assumptions about future compensation levels, such as increases over time by interest, amendments to plan, additional service years, and changes in actuarial assumptions
7.	the amount recognized in an employers financial statements as an expense of a pension plan for a period; components are service cost, interest cost, actual return on plan assets, pension gain or loss, amortization of unrecognized prior service cost, and amortization of deferred gain or loss in excess of the corridor amount
8.	the amount of pension benefits an employee will retain if employment with the employer is terminated