Question

The following refers to the pension spreadsheet (columns have missing amounts) for the current year for Pancho Villa Enterprises (PVE). ($ in millions) Debit(Credit) PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/ Asset Beginning balance 468 78 73 80 Service cost (103 ) Interest cost (43 ) Expected return on assets 73 Gain/loss on assets 4 Amortization of: Prior service cost Net gain/loss (4 ) Loss on PBO (83 ) Contributions to fund 58 Retiree benefits paid Ending balance (548 ) 72 140 What were the retiree benefits paid

Answer 1

Answer: $69 million

Explanation:

Retiree benefits paid = PBO Beginning balance + Service cost + Interest cost + loss on PBO - PBO Ending balance

Retiree benefits paid = (Beginning balance of plan - Net Pension Asset) + Service cost + Interest cost + loss on PBO - PBO Ending balance

= 468 - 80 + 103 + 43 + 83 - 548

= $69 million