Class12 - Pensions3

Class12 - Pensions3 - employees and their dependents D OPEB...

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M351 Notes, Class 12: OPEB, pages 1053-1064 Today’s topics: Pensions vs. OPEB – what the similarities/differences A. Differences between pension and OPEB: 1. Pension amounts are fixed while OPEB are often without limit 2. Future amounts of health care costs are difficult to forecast. B. The period over which employees work and earn OPEB benefits is called the attribution period. The attribution period ends when an employee has earned OPEB benefits (may precede retirement). C. The OPEB equivalent of the PBO is the EPBO (Expected Post Retirement Benefit Obligation). The EPBO is the actuarial present value as of a particular date of all benefits a company expects to pay after retirement to
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Unformatted text preview: employees and their dependents. D. OPEB expense is the sum of: (1) service cost, (2) interest cost, (3) actual return on plan assets, (4) amortization of prior service costs, and (5) gains and losses. E. Two worksheets illustrating the entry of data into OPEB worksheets appear in illustrations 20A-4 (page 1059) and 20A-6 (page 1060). Data for each worksheet appear prior to the presentation of each worksheet. The OPEB worksheets are very similar to the pension worksheets that appear in the body of the chapter. F. An illustration of the note disclosure for OPEB benefits appears in illustration 20A-9 on page 1062. 1...
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