Need help on this, I can not get the answer of 135 GBP using this formula. Economic pension cost= +/- Actuarial (gain)/loss + Current Svc cost + int cost + plan amendments - actual return where did I go wrong? the two methods in the CFA books should come to the same answer.

I cannot get the answer by using this formula either. So, just follow the solution methodology use adjusted change in liability minus adjusted change in assets. It works each time to calculate economic pension expense. Also, change in funded status - employer’s contribution also works.

Hi Current Service Cost + 96 Interest cost +1557 Actuarial Gain -306 Past service cost +132 Foreign exchange -42 Expected return on plan -1874 Actuarial Loss +572 Answer 135 I strongly suggest doing practice questions from finquiz. They have covered all these topics in excellent manner. you can use “SHIFT” to get a 30% off on premium package.

Thanks Mitchells, what is “SHIFT”?

oops. It is a coupon code.