Premier Sports Inc has a beginning PBO balance of $615,000 and a beginning market-related value of plan assets of $550,000. The net actuarial gain at the beginning of the period is $89,000 and the average employee base has a remaining service life of 20 years. What is the corridor?

Question

Quizplus · Accepted Answer

The corridor is 10% of the greater of the beginning PBO or the market-related value of plan assets. Here, 10% of $615,000 (PBO) is $61,500.

Premier Sports Inc Has a Beginning PBO Balance of $615,000