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Basic Question 12 of 24
The Colorado Copper Company sponsors a defined benefit pension plan. The following information pertains to that plan:
Service cost for 2011: 36 million.
Retiree benefits paid (end of year): 30 million.
Discount rate: 10%.
Projected benefit obligation at Jan. 1, 2011: $144 million.
Service cost for 2011: 36 million.
Retiree benefits paid (end of year): 30 million.
Discount rate: 10%.
No change in actuarial estimates occurred during 2011. What is CCC's projected benefit obligation at December 31, 2011?
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | projected PBO = initial PBO + svc costs + int costs (initial PBO X rate) - payouts |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset);
describe the components of a company's defined benefit pension costs;
explain and calculate the effect of a defined benefit plan's assumptions on the defined benefit obligation and periodic pension cost;
CFA® 2025 Level II Curriculum, Volume 2, Module 11.