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comprehensive computation of pension cost components the actuaries for interconnect 692825

Comprehensive Computation of Pension Cost Components

The actuaries for Interconnect Cable Company provided its accountants with the following information related to the company’s pension plan:


(in thousands)

December 31, 2007:


Increase in PBO arising from plan’s amendment                              

$ 684

January 1, 2008:






Fair value of the pension fund                                           


Market related value of the pension fund (5 year weighted average)                


Accrued pension cost                                                 

$ 226

Settlement discount rate                                               


Average service life for amortization of gain and prior service costs               

14 years

Unamortized pension gain—prior year                                     

$ 70

Expected rate of return                                                


For Year 2008:


Benefit payments to retirees                                            

$ 173

Contributions to pension plan                                           


December 31, 2008:




Fair value of pension plan assets                                         


Instructions: Based on the data provided, prepare a pension work sheet for Interconnect Cable Company for 2008. The 5 year weighted average value of plan assets is used in computing the expected return.

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