Which of the following statements is not accurate with respect to accounting for other post-retirement plan benefits (OPEB)?

Multiple Choice

• A decrease in the discount rate assumption used may lead to a large gain for a company.

• A company which shifts its former salaried employees from its post-65 retiree health plan to spending accounts that allow participants to buy health care from private exchanges creates a reduction in earned benefits referred to as a negative plan amendment.

• Firms are required to make sensitivity disclosures regarding the effect of a 1% increase or decrease in the health care trend rate assumption.

• The actuarially determined service cost of the plan is accrued over the required years of service to participate in the postretirement benefit plan (e.g. 10 years).