The three sentences summarize key information about components included in calculating net pension cost for a defined benefit pension plan: 1) Interest cost on the projected benefit obligation and service cost attributed to the current period are included in the net pension cost calculation. 2) Actual return on plan assets, amortization of unrecognized amounts, and excess of accumulated benefit obligation...
Read more ↓The three sentences summarize key information about components included in calculating net pension cost for a defined benefit pension plan: 1) Interest cost on the projected benefit obligation and service cost attributed to the current period are included in the net pension cost calculation. 2) Actual return on plan assets, amortization of unrecognized amounts, and excess of accumulated benefit obligation over fair value of assets are also included. 3) Interest cost represents the increase in the projected benefit obligation due to the passage of time.
Read less ↑Tags: accumulated benefit obligation, defined benefit pension plan, net pension cost, pension calculation, pension components, pension practice, pension quiz, pensions, plan assets, projected benefit obligation
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