City of Dallas Police and Fireman Defined Benefit Pension Plan experienced a difference between its expected Projected Benefit Obligation and its actual Projected Benefit Obligation during the calendar year 2015. The actuary notified City of Dallas Police and Fireman representative of the following accumulated information related to their plan on January 2, 2016.
Net Loss as of January 2, 2016 $330,000
Actual Projected Benefit Obligation as of January 2, 2016 $712,000
Fair Value of Plan Assets as of January 2, 2016 $1,730,000
City of Dallas Police and Fireman Defined Benefit Pension Plan representative is attempting to calculate the net gain or loss to include in its pension expense for the calendar year 2016. The average service life of the City of Dallas Police and Fireman Defined Benefit Pension Plan employees is 20 years. There is not any difference between the City’s expected and annual rate of return on the Pension Fund (Plan Assets) for calendar year 2016.
Required:
Determine the amount of the net gain or net loss that is required to be included in the pension expense calculation for the calendar year 2016.
If your answer is $500 Net Gain, then type 500 (Note this is 500) representing a gain – do not place a ‘+’ sign in front of 500 such as +500 – if you do this your answer will be counted incorrect
If your answer is $500 Net Loss, then type – 500 ( Note this is -500) representing a loss
The reason for this is Blackboard does not recognized + or () for losses, etc, therefore the only parameter is to type the answer as a number for a gain and as a negative in front of the number for a loss.