Why this is mistaken
Wrong: Every change in PBO belongs in service or interest cost.
Correction: Assumption changes and experience differences enter the actuarial gain-or-loss route rather than service or interest cost.
Where to watch
When this mistake may appear
- A benefit-plan analysis treats this claim as true: Every change in PBO belongs in service or interest cost.
Check your work
Your work may contain this mistake if:
- Every change in PBO belongs in service or interest cost.