Total Periodic Pension Cost Expense / Periodic Pension Cost / Periodic Pension Expense / Total Pension Cost
All those terms are all in the same correct?
Total Pension Cost = End Fund Status - Beg Fund Status + Contribution
Fund Status = PBO - Plan Assets
Total Pension Cost is the amount/cost that the employer has to pay. In other words it’s the Contribution amount needed to make things balanced. By adding the contribution above back into the equation you are essentially removing it from the calculation of Plan Assets. I know it seems strange because Plan Asset = actual return + contribution - benefits paid. But because how the formula is set up above you add it.
Pension Expense / Net Pension Expense
They are one in the same correct? Basically this is the amount incurred on the income statement.
Can anyone verify if this is right?