Term
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Definition
| promise fixed retirement benefits defined by a designated formula. |
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Term
| Defined contribution plans |
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Definition
| defined periodic contributions to a pension fund, without further commitment regarding benefit amounts at retirement. |
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Term
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Definition
| 1 ½% × Years of service × Final year’s salary |
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Term
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Definition
| direct composite of periodic changes that occur in both the pension obligation and the plan assets. |
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Term
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Definition
| not formally recognized on the balance sheet but are actively monitored in the employer’s informal records. |
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Term
| The assets of a pension fund must be held by ------------ |
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Definition
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Term
| An overfunded pension plan |
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Definition
| means plan assets exceeds PBO |
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Term
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Definition
| discount rate times the PBO balance at the beginning of the year. |
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Term
| When a returen is earned on investment securities, |
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Definition
| the plan asset balance increases |
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Term
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Definition
| recognized as pension expense over the future service period of the employees whose benefits are recalculated. |
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Term
| The components of pension expense |
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Definition
| are itemized in the disclosure note. |
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Term
| If the plan had been overfunded, |
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Definition
| Global would have reported a pension asset among its assets rather than this pension liability. |
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Term
| When the PBO exceeds plan assets, |
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Definition
| we have a pension liability. |
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Term
| If plan assets exceed the PBO, |
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Definition
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Term
| To reduce costs and lessen risk, |
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Definition
| Companies sometimes terminate defined benefit plans |
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Term
| To siphon off excess pension fund assets for other purposes |
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Definition
| Companies sometimes terminate defined benefit plans |
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Term
| What are the two basic types of pension plans |
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Definition
Defined benefit pension plans
Defined contribution pension plans |
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Term
| what are three different way to measure the pension obligation? |
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Definition
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Term
| What is the Accumulated benefit obligaion? |
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Definition
| It is the present value of estimated retirement benefits earned so far by employees. |
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Term
| what is the prior service cost? |
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Definition
| Cost of making plan amendments retroactive to prior years |
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