2015 Mock PM CFAI Q30 Pension

CFA Level II
#1

Isn’t it the formula + Employee contribution to get pension cost rather than - employee contribution? Anyone? End of year net pension asset (liability) (£124.8) Start of year net pension asset £386.8 Net change in funding status over year –£511.6 Less Employer contribution –£74.0 = Total periodic pension cost –£585.6

#2

Hi,

Depending on your perspectives (i.e from asset perspective or liability perspective), you will add or subtract employer contribution.

  1. Asset perspective:

(Ending Plan Assets - Ending PBO) - (Beginning Plan Assets - Beginning PBO) - Employer Contribution

  1. Liability perspective

(Ending PBO - Ending Plan Assets) - (Beginning PBO - Beginning Plan Assets) + Employer Contribution

#3

I see thats v clear thx man.

u mind i ask one more? what about q28 why they add employees contribution coz i tot the usual formula for change in plan assets just specifies employer contributions.