Under its method of accounting for pension and other postretirement benefit plans, the company recognizes into income, as a fourth quarter adjustment, any unrecognized actuarial gains and losses that exceed 10% of the larger of projected benefit obligations
or plan assets (the corridor).
First, the projected benefit obligations
among the public firms are relatively large.
Increasing the discount rate assumption decreases both the accumulated and the projected benefit obligations
DB plan, the funding ratio on accumulated benefit obligations increased from 95 percent at the start of 2004 to 99 percent at the beginning of 2005, while funding of projected benefit obligations
rose from 88 percent to 91 percent.
Calculate the interest costs on past service liabilities, technically known as projected benefit obligations
87, Employers' Accounting for Pensions, companies disclose the market values of pension plan assets and the projected benefit obligations
of the plans but do not recognize them on their balance sheets.
18 billion and projected benefit obligations
publicly traded organizations, ranked by their projected benefit obligations
at year-end 2009.
The $745 million decrease was due mainly to a $825 million actuarial loss related to a decrease in the discount rate used to determine the present value of the projected benefit obligations
(discount rate at Oct.
The fund's performance in 2006 again exceeded the 8 percent average annual return necessary to meet projected benefit obligations
to the system's current 776,000 members and beneficiaries.
7 billion in 2005), slower growth in projected benefit obligations
resulting from this move provides the pension funds with more capacity to absorb market fluctuations, given current asset levels.
The fund's performance in 2005 again exceeded the 8 percent annual return required to meet projected benefit obligations
to the system's 776,000 members and beneficiaries.