anish

”There are two ways two calculate Economic Pension Expense:
1. Economic Pension expense = service cost + interest cost - actual return.”
- this is wrong: it’s actually
Economic Pension expense = service cost + interest cost + plan amendments - actual return
so for that example on page 107, it would be:
Service Cost 357
+ Interest Cost 333
+ Plan amendments (-59 +755 - 25)
- actual return 241
= 1120
though seriously, why use that method when you can just do
The change in PBO 925
Less the change in Plan Assets 1028
Plus employer contributions 1223
= 1120