Answer the pension fill in the blank question What is the accounting label for the interest rate set by the Actuary?
An employer offers a pension plan in which the annual retirement payments are fixed.
Under this plan if the Pension Assets run out, the employer remains obligated to make
these annual payments. What kind of Pension Plan is this - Defined Benefit Plan or
Defined Contribution Plan?
An employer offers a pension plan where both the employee and the employer make
contributions. The employee's account vests immediately and is evidenced by a 401K
If the pension assets run out when the employee is retired, pension payments stop.
The employer has no obligation to the employee if it makes its contributions.
What kind of plan is this? - A Defined Benefit Plan or a Defined Contribution Plan?
What is the measurement basis for the annual pension obligation that the employe earns
in a defined benefit plan and is used to record the current period pension expense?
(Hints: Expected Future Value, Present Value, Market Value)
Name the four kinds of income (expenses) that Pension Trustees can earn on Pension Assets.
Some pension costs can be deferred or "hung up" on the balance sheet rather than expensed
in current income using a relatively new Equity account. Name it.
In accounting jargon what is the label for the expense representing the current period pension
cost that must be accrued for this year's work by each employee.
Name the federal agency that, under certain circumstances, is required by bankruptcy courts
to assume the responsibility for corporate defined benefit plans.
The federal government, under Presdient Franlin Delano Roosevelt instituted a federal
pension program that is available to many, but no all Americans. For example, Louisiana
state workers are not members of this plan and instead are members of the Louisiana State
Retirement System. Please name this federal pension program, which operates like a defined benefit plan.
Pension assets held to fund your future pension benefits at some employers are invested the market.
Please state whether the overall return on market investments in any one year is either
certain and not risky, or variable and so risky.
If a company invests pension assets to help cover a defined benefit plan, may it ESTIMATE its market returns
in preparing its income statement accounting for the pension expense, or must ACTUAL returns be used.
Is it true that many professional forecasters feel the federal Social Security system will eventually be bankrupt?