136C Notes 1_20_11

# 136C Notes 1_20_11 - Cumulative Net Beginning Unrecognized...

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[[[Cumulative: Measuring all of the gains and losses, and net them, too. Generally, it evens itself out. beginning : Something to notice, everythign we do with pension expense is based on beginning of the year numbers. General tendency in all pension expense. Unrecognized. Actuarial: comes from the actuary. He calculates these numbers each year… these are called gains or losses on the PBO measurement. PBO is main source of actuary numbers. The second source is the assets. What is their performnce each year? Positive/negative? Add together (g/l on PBO and g/l on return on assets) to get the actuarial g/L. ]] What you'll get… net. (On test) (-) the corridor : theres an upper level and lower level of gains or losses. The overall picture that we're saying is we w ill allow a 10% error in each direction. but when it goes outside this 10%, it goes outside the acceptable range of error. [[Definition: 10% of the greater of PBO or plan assets.]] If… (=) Excess ??? If a positive, divide by the average service life straightline over the amount of employees under the plan. [[#4: Component Pension Expension]]

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136C Notes 1_20_11 - Cumulative Net Beginning Unrecognized...

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