P 17-16 Comprehensive— reporting a pension plan; pension spreadsheet; determine changes in balances; two years
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2011:
Prior service cost at Jan. 1, 2011, from plan amendment at the
beginning of 2009 (amortization: $4 million per year)
$32 million
Net loss-pensions at Jan. 1, 2011 (previous losses exceeded previous gains)
$40million
Average remaining service life of the active employee group
10 years
Actuary’s discount rate
8%
($in millions)
PBO
Plan Assets
Beginning of 2011
$300
Beginning of 2011
$200
Service cost
48
Return on plan assets.
Interest cost, 8%
24
7.5% (10% expected)
15
Loss (gain) on PBO
(2)
Cash contributions
45
Less: Retiree benefits
(20)
Less: Retiree benefits
(20)
End of 2011
$350
End of 2011
$240
