1.Retiree benefits paid _____a_____the PBO, while service costs____b______PBO.

a)do not impact; are equal to; increase; reduce

b)do not impact; are equal to; increase; reduce

2.The interest element is calculated by taking the ____a_____ and multiplying it by the______b_______used by the actuary.

a)service cost; beginning projected benefit obligation; discount rate; pension expenses

b)service cost; beginning projected benefit obligation; discount rate; pension expenses

3.When a _____a_____ is amended, credit often is given for employee service rendered in prior years. The cost of doing so is called _____b_____cost.

a) benefit; prior service; tax; pension plan

b) benefit; prior service; tax; pension plan