1.

RETIREMENT BENEFIT EXPENSE / EMPLOYEE BENEFIT EXPENSE

FORMULA:
CURRENT SERVICE COST
PAST SERVICE COST
INTEREST EXPENSE ON PBO
(INTERST INCOME ON FVPA)
SETTLEMENT LOSS/(GAIN)
EMPLOYEE BENEFIT EXPENSE/RETIREMENT BENEFIT EXPENSE

FORMULA:
INTEREST EXPENSE = PBO BEG. X DIS0COUNT RATE
INTEREST INCOME = FVPA BEG. X DISCOUNT RATE

2. DEFINED BENEFIT COST OCI / NET REMEASUREMENT OCI

FORMULA:
REMEASUREMENT GAIN/LOSS PLAN ASSET
ADD: ACTUARIAL GAIN/LOSS
DEFINED BENEFIT COST OCI/ NET REMEASUREMENT OCI

FORMULA: REMEASUREMENT GAIN/LOSS PLAN ASSET

ACTUAL RETURN/LOSS ON PLAN ASSETS
(LESS: INTERST INOME OF FVPA)
REMEASUREMENT GAIN/LOSS PLAN ASSET

3. TOTAL RETIREMENT BENEFIT COST

FORMULA:
RETIREMENT BENEFIT EXPENSE / EMPLOYEE BENEFIT EXPENSE
ADD: DEFINED BENEFIT COST OCI / NET REMEASUREMENT OCI
(LOSS)
TOTAL RETIREMENT BENEFIT COST
*NOTE: IF DEFINED BENEFIT COST OCI / NET REMEASUREMENT OCI IS
GAIN, DEDUCT TO EMPLOYEE BENEFIT EXPENSE.

4. UNDERFUNDING
FORMULA:
TOTAL RETIREMENT BENEFIT COST
(LESS: CONTRIBUTION TO THE PLAN)
UNDERFUNDING

*NOTE: IF CONTRIBUTION TO THE PLAN IS HIGHER THAN THE TOTAL

RETIREMENT BENEFIT COST, IT IS OVERFUNDING, AND WILL BE DEDUCTED
TO BENEFITS PAID. THEREFORE, IT WIL RESULT TO DEFINED BENEFIT ASSET.

5. DEFINED BENEFIT LIABILITY

FORMULA:
BENEFITS PAID
 ADD: UNDERFUNDING
DEFINED BENEFIT LIABILITY
*NOTE: IF THERE IS BENEFITS PAID

6. ACTUAL RETURN ON PLAN ASSET

FORMULA:
FVPA END
(LESS: FVPA BEG.)
(LESS: CONTRIBUTION)
ADD: BENEFITS PAID
ACTUAL RETURN ON PLAN ASSET

7. RETIREMENT BENEFIT LIABILITY

FORMULA:
(A) ACCRUED BENEFIT OBLIGATION BEG.
(LESS: FVPA BEG.)
RETIREMENT BENEFIT LIABILITY

(B) RETIREMENT BENEFIT ASSET = IF THE FVPA BEG. IS HIGHER THAN PBO
BEG.

8. FVPA END
FORMULA:
FVPA BEG.
CONTRIBUTION TO THE PLAN
ACTUAL GAIN/(LOSS) ON PLAN ASSET
(BENEFITS PAID)
FVPA END
*NOTE: BENEFITS PAID = SETTLEMENT PRICE ON DEFINED BENEFIT
OBLIGATION.

9. PROJECTED BENEFIT OBLIGATION (PBO)/DEFINED BENEFIT

OBLIGATION
FORMULA:
PBO BEG.
CURRENT SERVICE COST
PAST SERVICE COST
INTEREST EXPENSE
ACTUARIAL LOSS/(GAIN)
(BENEFITS PAID)
PBO END
*NOTE: BENEFITS PAID IS PV OF PBO SETTLED.
10.DEFINED BENEFIT LIABILITY *IF NO BENEFITS PAID*
FORMULA:
(A) ABO OR ACCRUED B.O. END
(FVPA END)
DEFINED BENEFIT LIABILITY

(B) DEFINED BENEFIT ASSET IF FVPA END IS HIGHER THAN ACCRUED B.O. END

11.SERVICE COST
FORMULA:
FVPA BEG.
INTEREST INCOME (FVPA X DR)
EMPLOYER CONTRIBUTIONS
(LESS: BENEFITS PAID TO RETIREES)
(FVPA END)
ACTUARIAL LOSS ON PLAN ASSETS

NET ACTUARIAL GAINS

ACTUARIAL LOSS ON PLAN ASSETS
ACTUARIAL GAIN ON BENEFIT OBLIGATIONS

ABO/PBO END
(LESS: ABO/PBO BEG + INTEREST EXPENSE (PBO X DR)
(LESS: ACTUARIAL GAIN ON BENEFIT OBLIGATIONS
(LESS: BENEFITS PAID TO RETIREES)
SERVICE COST

12.*NOTE: NET ACTUARIAL GAINS = NET REMEASUREMENT GAIN - OCI