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T F 1. The projected benefit obligation may be less reliable than the accumulated benefit obligation....

T F 1. The projected benefit obligation may be less reliable than the accumulated benefit obligation.

T F 2. The amount of the vested benefit obligation is less than the projected benefit obligation and more than the accumulated benefit obligation.

T F 3. An upward revision of inflation and compensation trends would likely cause a loss in the pension benefit obligation.

T F 4. If the PBO is deducted from Pension Plan Assets, the result will always be a positive number.

T F 5. If a company’s pension plan is less than fully funded at the end of a given year, the company must recognize a loss in OCI for the year.

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Answer #1
1. The projected benefit obligation may be less reliable than the accumulated benefit obligation. TRUE
2. The amount of the vested benefit obligation is less than the projected benefit obligation and more than the accumulated benefit obligation. FALSE
3. An upward revision of inflation and compensation trends would likely cause a loss in the pension benefit obligation. FALSE
4. If the PBO is deducted from Pension Plan Assets, the result will always be a positive number. FALSE
5. If a company’s pension plan is less than fully funded at the end of a given year, the company must recognize a loss in OCI for the year. TRUE
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