Dear Goodwill Huntings,
Hopefully this is relatively straight forward but just want to confirm that for PPC, employer contribution should be a negative given that as an employer your paying $$$$$$ this out.
Periodic Pension Cost = Employer Contribution – (Ending Funded Status – Beginning Funded Status)
= Employer Contribution – ΔFunded Status
In essence should there be sort of a minus sign in front of employer contribution, maybe I’ve been looking at this all too much, more confused than when I started - anyone who can weave some of that Goodwill magic would be appreciated.
Here, you’re treating the employer contribution as a positive number: you’re looking at it from the pension fund’s viewpoint.
Ok so the plot thickens, although seems to make sense
PPC Employer Point of View
-Employer Contribution + Ending Funded Status – Beginning Funded Status
PPC From Pension Fund Point of View
Employer Contribution – Ending Funded Status + Beginning Funded Status
Hopefully they are specific in terms of which point of view they want it to be from i.e. the employers or funds point of view. However, if you think about it Periodic Pension Cost from funds point of view, could almost be termed Periodic Pension contribution???
Thanks again for the feedback S2000, you’re a king amongst men
You got it, and you’re quite welcome.