FAR 14-pensions Flashcards
1
Q
What does the acronym “A-SPIDER” stand for?
A
Amortization of existing net obligation or asset at implementation; Service cost; Prior service cost; Interest cost; Deferred gain; Excess amortization of deferred gain; Return(actual) on plan assets.
2
Q
What is a vested benefit obligation?
A
What a company owes an employee if he quit; PV of vested benefits ( benefits not contingent on employee staying for certain length of time)
3
Q
What is an accumulated benefit obligation?
A
What is owed an employee at current wage rates if he stays employed till retirement. PV of employee benefits
Attributed to service prior to that date.
4
Q
What is a Projected Benefit Obligation?
A
What is owed an employee if he continues till retirement based on FUTURE wage rates.
