Chp 19 Pension and Postretirement Benefits Flashcards
A pension plan where employees provide the funding or employees voluntarily make payments to increase retirement benefit.
Contributory
Additional pension benefits earned by employees based upon employee service in current year.
Service Cost
____ Benefit Obligation is present value of retirement benefits attributed to employees to date.
Accumulated
Defined _____ Pension Plan: type where employers make periodic investment and employees are responsible and bear risk of uncertain investment return.
Contribution
10% of the greater of PBO or plan assets; used in pension expense calculation.
Corridor
_____ Benefit Plan: these are additional benefits for retired employees, such as medical and dental coverages, life insurance, tuition assistance, legal services, and housing subsidies.
Post-retirement
____ Pension Plan is one that meets guidelines for favorable tax treatment by IRS.
Qualified
Professional statistician used ti assess uncertainties affecting defined benefit calculations.
Actuary
____ Benefit Obligation: is present value of retirement benefits attributed to employees to date and currently entitled; benefits entitled if employee were to cease employment.
Vested
_____ Benefit Obligations is the employers liability to pay retirement benefits to retirees.
Projected
A pension plan where the employer bears the full cost of the retirement benefits.
Noncontributory
Defined _____ Pension Plan: type where employers are responsible for sufficient funds to provide promised future payment to employees.
Benefit
A bank or trust company that invest employer’s contributions in a pension fund, make retirement payments, and provide employer periodic updates.
Trustee
Pension ______ is a separate legal and reporting entity, outside of employer and gains/losses from investment.
Fund
Represents amount of pension cost allocated to the annual reporting period for a company.
Pension Expense
