Retirement Obligations Funding Status. General Motors Company (GM) is a worldwide manufacturer of automobiles. Assume the company's pension disclosures from its annual report (in millions of dollars) were as follows: Plan Assets 2018 2017 Beg. plan assets Actual return on plan assets Employer contributions Benefits paid Foreign exchange adjustments Other plan adjustments Total plan assets Defined Benefit Obligation $92,561 $89,305 (1,342) 9,089 2,040 1,476 (6,493) (7,723) (1,327) 1,208 (584) (794) $84,855 $92,561 Beginning Benefit Obligation $109,487 $107,980 Service cost Interest cost Actuarial gain/losses Benefits paid 430 3,017 460 3,142 (5,665) 4,135 (7,792) (7,723) Foreign exchange adj. (1,742) 2,344 Other adj. Projected benefit obligation Discount rate (421) 97,313 109,487 (850) 3.96% 4.08% 5.04% 4.20% Assumed rate of return Required 1. Identify the projected benefit obligation and pension plan assets for 2017 and 2018: Note: Enter PBO as a negative amount. millions Plan assets Less: PBO 2018 2017 $ $ Over (under) funding $ $ Is GM's defined benefit plan over- or underfunded relative to its PBO? 2017 2018 How will GM's pension asset/debt position be reflected on its balance sheet? 2. Lowering the discount rate from 3.4 percent in 2017 to 3.3 percent in 2018 will increase or decrease the PBO? Raising the expected rate of return from 3.5 percent in 2017 to 4.2 percent in 2018 will increase or decrease the expected return on plan assets in the pension cost calculation?