What Are Past Service Costs in a Defined Benefit Plan

question 2

Multiple Choice

What are past service costs in a defined benefit plan?

• A)Plan amendments that retrospectively improve pension plan benefits.
• B)Difference arising between the actual and the expected value of plan assets.
• C)Expected interest,dividend or income earned on the pension plan assets.
• D)Differences arising between the actual and expected values of the pension obligations.

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Definitions:

Change

The act or result of making something different, often used in the context of making modifications to contracts, policies, or physical items.

Independent Agency

An agency of the United States government that operates independently of the executive departments, responsible for oversight and administration of specific functions.

Federal Deposit Insurance Corporation

A U.S. government agency that provides deposit insurance to depositors in American commercial banks and savings institutions, up to a defined limit.

Consumer Product Safety Commission

A U.S. federal agency responsible for regulating the sale and manufacture of consumer products to ensure they do not pose any unreasonable risk of injury or death to consumers.