DEF BENEFITS PENSION PLAN Flashcards
What are the components of net assets side of DBPP
- Changes in FV Of each significant class of investment.
- Contributions from employer to its participants
- Benefits paid to the participants.
Changes in acturial PV of accumulated plan benefit is the actual plan benefits to be paid out which is simply the liability side of the plan.
What are the required financial stmts of DEFINED BENEFIT PENSION PLAN AND defined CONTRIBUTION PENSION PLAN.
Statement of net assets available for benefits and statement of changes in net assets available for benefits.
The funded status of a defined benefit pension plan for a company should be reported in
The funded status is reported on the balance sheet, as a liability. It is the difference between plan assets and the total projected benefit obligation.
A pension plan has two main parts: the future liabilities created by employees’ service, and the plan assets being accumulated to pay for those obligations. So the “funded status” is the difference between the two – in other words, the remaining liability that the current plan assets wouldn’t cover.
A govt makes a contribution to its pension paln $10000 for y1. The acturially determined annual required contribution for y1 was 13500. The pension plan paid benefits of 8200 and refunded employees contrbution of 800 for y1. What is the pension expenditure for y1 in general fund.
The actual question ask what is the pension expenditure for y1 in general fund. Pension trust fund - the fund that actually operates pension plan for the govt would receive 10000 as an addition and the pension expenditure for general fund in y1 is 10000.
