pension accting

Hi!

in the text there’s an example that’s calculating the closing obligations and benefits earned to the employee in a table over 5 years.

in each of the scenarios it has this calculation:

Annual unit credit = Value at retirement date/Years of service

and that Annual unit credit number is then discounted for each yr to get the current service cost for each yr. I was under the impression that you take the entire value at retirement date and then discount it back to get the service cost for that 1 year?

anyone have any idea?