# How is postretirement benefit expense calculated?

How is postretirement benefit expense calculated? It is calculated by multiplying the current period’s accumulated PBO’s beginning balance by the discount rate and subtracting benefit payments. Obtain the actual return on plan assets. What is

## How is postretirement benefit expense calculated?

It is calculated by multiplying the current period’s accumulated PBO’s beginning balance by the discount rate and subtracting benefit payments. Obtain the actual return on plan assets.

## What is a pension worksheet?

A pension worksheet is used to determine the general journal entries and the memo entries. The worksheet consists of two sections: general journal entries – these amounts are actually recorded in the general journal.

How do you calculate pension expense?

To calculate a pension expense, the employer must report the service and interest cost, expected return on plan assets, amortization of prior service cost and effects of gains and losses.

### How do you calculate projected benefit obligation?

How to Calculate Projected Benefit Obligation

1. Find the funded status of the pension plan on the company’s balance sheet.
2. Determine the fair value of the pension plan’s assets.
3. Subtract the pension plan’s funded status from the fair value of the plan’s assets to determine the projected benefit obligation.

### What is the postretirement benefit expense for the company?

Post-retirement benefit expense refers to the cost of pension recognizable for the period. There are several components in computing for post-retirement benefit expense, but they depend on the type of plan established by your company. These plans can either be a defined contribution plan or a defined benefit plan.

What is post-retirement benefit expense?

Post-retirement healthcare benefits are plans offered to employees that cover healthcare expenses. Post-retirement healthcare expense for the year is the increase in APBO attributed to the additional year of service time and interest less expected returns on plan assets.

#### What is the projected benefit obligation?

A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the present time to cover future pension liabilities. Projected benefit obligation (PBO) assumes that the plan will not terminate in the foreseeable future and is adjusted to reflect expected compensation in the years ahead.