Pensions

Question 1

U.S. GAAP Accumulated Benefit Obligation

Answer 1

The present value of future retirement payments attributed to the pension benefit formula to employee services rendered prior to a date, based on current and past compensation levels

Question 2

Service Cost

Answer 2

The present value of all pension benefits earned by company employees in the current year (provided by actuary)

Question 3

Interest Cost

Answer 3

Interest on the projected benefit obligation

Question 4

Projected Benefit Obligation

Answer 4

The present value of future retirement payments attributed to the pension benefit formula to employee services rendered prior to a date, based on current and past and (an assumption about) future compensation levels (Used for most pension calculations)

Question 5

Difference between the accumulated benefit obligation and the projected benefit obligation

Answer 5

the assumption of future compensation levels

Question 6

S
I
R
A
G
E

Answer 6

S. Service cost
I. Interest cost (beg PBO x Discount rate)
R. expected Return on plan assets (beg FV x expected rate)
A. Amortization of prior service cost (/ by expected years)
G. amortization of (Gains) / losses
E. amortization of transition asset (/ by expected years)