Pensions

Question 1

What are the differences in calculating post-retirement benefits from pensions?

Answer 1

1. Costs are not funded during service period, include only service cost, interest cost, and possibly amortization of PSC
2. Costs are matched to period of service required to qualify, not entire service time

Question 2

How is Ending PBO calculated?

Answer 2

Beginning PBO
\+ Service Cost
\+ Interest Cost
\+/- PSC - not amortization
\+/- Actuarial G/L
- Benefits Paid
= Ending PBO