The amortization of a net gain has what effect on pension expense?

Question

Quizplus · Accepted Answer

The amortization of a net gain decreases pension expense. Net gains are the amounts by which actual returns on plan assets exceed the expected returns or amounts by which actual experience is more favorable than the assumptions used to calculate the PBO. Amortizing these gains over time reduces their impact on pension expense in any given year, therefore decreasing it.

The Amortization of a Net Gain Has What Effect on Pension