Quick Economic Pension Expense Question benefits, economic, included

Gypsy

When calculating economic pension expense, if we are given the components of PBO, should we include amortization g/l…I know one version of the formula is (change in PBO except benefits paid) - actual return on assets…which would indicate to me that amortization g/l should be included, but I think I’ve seen the amortization g/l handled both ways
Can anyone help?

AnalystForum

I use this one and it stuck quite nice in my head
Contributions (Employer’s / Asset Side)
-Change in funded Status
= Economic Pension Expense

WarrenB1

economic pension expense is:
change in funded status (if it gets more under funded it’s a negative amount)
- firm contributions

ninja1024

My fault, you’re right

skycfa

Pretty sure its right

MiniMe7

Pretty sure that’s incorrect…

mp3bu

EPE = Change in PBO - Increase in Plan Assets + Contribution in Period

Windjammer

The most general formula does do not include amortization amounts. From what I read in the books, economic pension expense is calculated in order to eliminate the smoothing effect type things that get baked into regular pension expense

DSquaredSlim

ssr123456 Wrote:
——————————————————-
Economic Pension Expense = Service Cost + Interest
Cost - Actual Return on Plan Assets
so are you saying not to include other/amortization expense that is in the PBO?

mar350

Economic Pension Expense = Service Cost + Interest Cost - Actual Return on Plan Assets