Could anyone help me identify what’s the difference between past service cost and acturial g/l?
does PSC mean acturial g/l in past service years and acturial g/l is for the current year?
Thx in advance!
If you increase the % paid for each year of service in a pension then past service costs will increase
actuarial is when you make changes to the assumptions of an employee’s livelyhood or something similar
if you increase the % paid for each year of service, very likely I am changing the growth assumption or other inputs, it seems to me kind of changing the acturial assumptions right? thank you for your answer.
Prior service cost is the (current) cost that you would have incurred if your assumption was made from T = 1 instead of t=30
Actuarial adjustments relate more to speculating on the future trends
So could i say that: PSC captures the effect of acturial changes to prior period, and acturial g/l is representative for effects of acturial changes in current period? thank you
yup, I was about to say what your last comment just was. Looks like you got it!!