roger

Question 1

pension

Answer 1

an agreement between employer and employee to give the employee benefits in the form of a lump sum payment or an annuity upon retirement

Question 2

Defined contridution plan

Answer 2

A pension or other retirement plan that measures the amount the employer is required to contribute to the plan and limits benefits to amounts available as a result of those contribuitions and net earnings on the plans investments

Question 3

defined benefit plan

Answer 3

a pension plan that measures the benefits the employees are entitled to upon retirement and places the obligation on the employer to make the contributions nessary

Question 4

VBO Vested benefit obligation

Answer 4

the actuarial present value of the amount employees would be entitled to recieve if they terminated employment on date of measurement

Question 5

ABO accumulated benefit obligation

Answer 5

the actuarial present value of the benefits that have been earned by employees as of the date of measurement assuming those employees will remain employed until the benefits are vested and WITHOUT taking into account future increases in compensation rates

Question 6

PBO projected Benefit obligation

Answer 6

The actuarial present value of the benefits that have been earned by employees as of the date of measurement, assuming those employees will remain employed untill the benefits are vested and taking INTO account projected future increases in compensation rates

Question 7

Pension expense / cost

Answer 7

Spider 
Service cost
\+-Prior service cost amort
\+interest cost
\+deferred gain or loss
-excess amort of deferred gain 
-actual Return on plan assets
=pensoion expence