Economic Pension expense change, economic, benefit, correct

mamuka12

Hi,

I am a bit confused on the economic pension expense. There are 2 ways to calculate it:

1/ it corresponds to the sum of the changes in the PBO (excluding benefit paid) less the actual return on plan assets,

2/ it corresponds to the change in the funded status excluding employer contribution.

Am I correct?

Thankx,

mengxu

I second this after trying to find a 2nd way to do it to double check myself it got messy. the 2 equations are the same thing I think.

cv4cfa

OK,

Thank you for the answer and I ll try to remember that !