Compensation and Benefits F28-05b

Name the five components of pension expense.

1. Service cost: The actuarial present value of pension benefits, earned during the current period.
2. Interest cost: PBO at start * discount rate.
3. Expected return on plan assets: Fair value of plan assets at start * expected long-term rate.
4. Amortization of prior service cost.
5. Amortization of net gain or loss.