SOA RET DARetirement Benefits — Design & Accounting (U.S.)

Fellowship (FSA)

5 hours·≈10 written-answer questions·≈400 study hours

Score 0/0 · 4 MC

RET DA · Q1
Multiple choice
Pension accounting (ASC 715 / IAS 19)
PBO 500, assets 420, unrecognised net loss 70, average remaining service 10 years. Minimum corridor amortisation of the loss is:
RET DA · Q2
Written answer
Pension accounting (ASC 715 / IAS 19)
At 1 Jan: PBO 1,000, assets 900, discount rate 5%, expected return 6%, service cost 40, benefits paid 60 (year-end), actual return 8%, unrecognised loss 120 (prior), average remaining service 12 years, no prior service cost. Compute net periodic pension cost for the year and the year-end funded status, and explain how IAS 19 would differ.