Misconception · MIS:pension-prior-service-cost-or-credit-can-be-handled-as-a-shortcut

Mistaken idea “Mistaken idea: A plan amendment's full effect belongs in current pension cost”

Mistaken reasoning: A learner may assume that a plan amendment's full effect belongs in current pension cost. The correction keeps the pension or postretirement schedules distinct.

Updated Sep 11, 2026 Review due Dec 11, 2026

Why this is mistaken

Wrong: A plan amendment's full effect belongs in current pension cost.

Correction: The amendment effect is recognized through OCI and AOCI, then amortized under the applicable rules.

Where to watch

When this mistake may appear

A benefit-plan analysis treats this claim as true: A plan amendment's full effect belongs in current pension cost.

Check your work

Your work may contain this mistake if:

A plan amendment's full effect belongs in current pension cost.