Pensions

Question 1

Pension Benefit Obligation

Answer 1

The actuarial present value as of a date of all benefits attributed by the pension benefit formula to employee service rendered prior to that date. The projected benefit obligation is measured using assumptions as to future compensation levels if the pension benefit formula is based on those future compensation levels (pay-related, final-pay, final-average-pay, or career-average-pay plans). BASED ON FUTURE COMPENSATION.

Question 2

Accumulated Pension Obligation

Answer 2

The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels. BASED ON PRIOR COMPENSATION.

Question 3

Calculating net periodic pension cost

Answer 3

Interest cost + amortization of prior service cost - expected rate of return

Question 4

Discount rate used to calculate projected benefit obligation

Answer 4

Based on long-term debt interest rates not actual or expected ROR on plan assets