ACCT567 Pension Plan Calculation

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ACCT567 Pension Plan Calculation
Pension Plan Calculation. The Village of Dover administers a defined benefit pension plan for its police and…

Description

ACCT567 Pension Plan Calculation

ACCT567 Pension Plan Calculation

The Village of Dover Problem 8-8 A+

The Village of Dover administers a defined benefit pension plan for its police and fire personnel. Employees are not required to contribute to the plan. The village received from the actuary and other sources the following information about the Public Safety Employees’ Pension Fund as of December 31, 2011.

Required

Assuming that the Village of Dover contributes $385,000 cash to the plan on December 31, 2011, calculate the employer’s

  1. Annual pension cost.
  2. Net pension obligation, as of December 31, 2011.