Suppose at the end of Year 0 the PBO is $100 and the plan assets are $95. There is a $10 debit balance in accumulated other comprehensive income for unexpected gains and losses Year 1: - Service Cost of $35 - Settlement rate = expected return =10% - Actual return is $12 - The firm contributed $30 - The plan paid benefits to retirees of $5. Year 2: - On January 1, the firm increased its retirement benefit increasing the PBO for employees already in the plan by $30. - Service Cost of $45 - Settlement rate = expected return =10% - Actual return is $15 - The firm contributed $80 - Amortization of prior service cost was $6 - The plan paid benefits to retirees of $10. - The actuary estimates the PBO to be $230 at year end