Escolar Documentos
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Postretirement Benefits
Chapter 17
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W. Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Copyright2013byTheMcGrawHillCompanies,Inc.Allrightsreserved.
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17-3
17-4
17-5
Contributions
Contributions
are
are defined
defined
by
by
agreement.
agreement.
Employer
Employer
deposits
deposits an
an
agreed-upon
agreed-upon
amount
amount into
into
an
an employeeemployeedirected
directed
investment
investment
fund.
fund.
Employee
Employee
bears
bears all
all risk
risk
of
of pension
pension
fund
fund
performance.
performance.
17-6
3,300
3,300
17-7
Employer
Employer is
is
committed
committed to
to
specified
specified
retirement
retirement
benefits
benefits..
Retirement
Retirement
benefits
benefits are
are
based
based on
on aa
formula
formula that
that
considers
considers
years
years of
of
service,
service,
compensation
compensation
level,
level, and
and age.
age.
Employer
Employer
bears
bears all
all risk
risk
of
of pension
pension
fund
fund
performance.
performance.
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1710
1711
1712
1713
1714
10
1.5%
$ 60,000 per year
1715
11
1.5%
$ 66,000 per year
1716
1717
1718
1719
1720
1721
1722
*Of course, these expanded amounts are not simply the amounts for Jessica Farrow
multiplied by 2,000 employees because her years of service, expected retirement date, and
salary are not necessarily representative of other employees. Also, the expanded amounts
take into account expected employee turnover and current retirees.
Includes the prior service cost that increased the PBO when the plan was amended in 2012.
1723
1724
1725
UNDERFUNDED
Market value of plan
assets is below the
actuarial present value
of all benefits earned by
participants.
1726
1727
1728
Service Cost
Actuaries have determined that Global
Communications has service cost of
$41 million in 2013.
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Interest Cost
Interest cost is calculated as:
PBOBeg Discount rate
Global had PBO of $400 million on 1/1/13. The actuary
uses a discount rate of 6%.
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1732
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Corridor Amount
The corridor
amount is 10% of
the greater of
PBO at the
beginning of the
period.
Or
Fair value of plan
assets at the
beginning of the
period.
1734
at beginning of year
amount
Average remaining service period of active
employees expected to receive benefits under the plan
1735
400
300
55
15
1736
1737
LossOCI
PBO
Plan assets
GainOCI
($ in millions)
23
23
3
1738
43
27
65
4
1
1739
($ in millions)
Plan assets
48
Cash (contribution to plan assets)
48
Its not unusual for the cash contribution to differ
from that years pension expense. After all,
determining the periodic pension expense and the
funding of the pension plan are two separate
processes.
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Comprehensive Income
Comprehensive income is a more expansive view of
income than traditional net income.
1744
Comprehensive Income
1745
Pension Spreadsheet
1746
Less:
Equals:
Retiree
Retiree
share
share of
of
cost
cost
Medicare
Medicare
payments
payments
Estimated
Estimated net
net
cost
cost of
of benefits
benefits
Many companies
also furnish other
postretirement
benefits to their
retired employees.
1747
1748
1749
x
2012
$10,842
EPBO
1.06
$11,493
EPBO
10
/35
fraction
attributed
$3,098
APBO
/35
11
fraction
attributed
$3,612
APBO
1750
1751
Attribution
1752
1753
1754
End of Chapter 17