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Employee benefits

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

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May 11, 2021 at 10:12 am #620289
rashard
Participant
- Topics: 17
- Replies: 32
Hi Chris/ Stephen,
How is the pension liability calculated? In the Kaplan book it is given salary at retirement * (no.of years worked/60 years) and discounted to PV. So the calculations are done when the employees leave the company? If so, how does it change the value of obligations when a curtailment occurs?
May 11, 2021 at 11:21 am #620294
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3434
Actuaries do all horrid calculations.
If Q says that the liability goes up or down by 10 because of curtailment, treat it like any other service cost:
Dr or Cr P&L
Dr or Cr Liability.
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