Question
Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employers projected benefit obligation.
Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employers projected benefit obligation. Provide short explanation per event.
1. Interest cost
2. Past service cost
3. A decrease in the average life expectancy of employees
4. An increase in the average life expectancy of employees
5. A plan amendment that increases benefits is made retroactive to prior years
6. An increase in the actuary's assumed discount rate
7. Cash contributions to the pension fund by the employer
8. Benefits are paid to retired employees
9. Service cost
10. Return on plan assets during the year is lower than expected
11. Return on plan assets during the year is higher than expected
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