Which of the following items does not increase the net pension liability and pension expense for a government offering a defined benefit pension plan? A) Service cost B) Interest C) Benefit payments to retired employees D) None of the above, all of these increase net pension liability and pension expense.

Question

Quizplus · Accepted Answer

Benefits paid to retired employees would decrease the net pension liability. Increases to the net pension liability would be: service cost, interest, increases in the total pension liability attributable to current period changes in the terms, amortization over the service life of the employees of any increases in the pension liability attributable to changes in actuarial estimates and amortization over 5 years of the excess of projected over actual plan return.

Which of the Following Items Does Not Increase the Net