| Interest on Liability - Interest accrues each year on the PBO just as it does on any discounted debt | Two items comprise the gain or loss: difference between the actual return and the expected return on plan assets and, amortization of the unrecognized net gain or loss from previous periods• Gain or Loss - Volatility in pension expense can be caused by sudden and large changes in the market value of plan assets and by changes in the projected benefit obligation |
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| See our and for details |
Actual Return on Plan Assets - Increase in pension funds from interest, dividends, and realized and unrealized changes in the fair market value of the plan assets.
10| Timeliness no real time financial information• Service Cost - Actuaries compute service cost as the present value of the new benefits earned by employees during the year | Amortization of Unrecognized Prior Service Cost - The cost of providing retroactive benefits is allocated to pension expense in the future, specifically to the remaining service-years of the affected employees |
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| Future salary levels considered in calculation | Future salary levels considered in calculation |
Actual Return on Plan Assets - Increase in pension funds from interest, dividends, and realized and unrealized changes in the fair market value of the plan assets.
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