According to Schweser=If discount rates are increased, then Pension expense goes down.
I can see how PV of current service costs will go down with the increase in discount rate but doesnt this also increase interest costs?
Typically it will be lower because the lower opening obligation offsets the increased discount rate impact on interest expense. This is usually the case, but not always (depends on the pattern and duration of the projected benefits and the impact of the move on the opening obligation).
This was covered in this thread: http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91329169.
Post 5: question.
Post 7: answer.