Pensions:

1.What is the difference between a defined benefit and a defined contribution pension plan?

2.What is the formula for determining the pension plan assets? Give a brief explanation of each component.

3.What the formula for determining the Projected Benefit Obligation? Give a brief explanation of each component.

4.How do we determine if a pension plan is over- or underfunded? (What two amounts do we compare?)

5.What are the components of Pension Expense?

6.Do we use actual or expected returns in the computation of Pension Expense? Why do we use this amount? (This is in the textbook).