A companyis considering a pension plan amendment that would alter its plan to pay an

annual benefit of 3.0% instead of 2.5%. In addition, the company's actuary recently

suggested that the company may need to reduce its discount rate from 5% to 3.5% in

2015 in light of historically low interest rates. Treating each potential change

independently, comment on how each would be recorded, should the changes be

enacted.