Actuarial gains and losses

Actuarial gains and losses comprise the difference between the pension payments actually made by an employer and the expected amount. A gain occurs if the amount paid is less than expected. A loss occurs if the amount paid is higher than expected. It is necessary to have expected pension amounts, due to the need to factor such issues as employee tenure and the rate of pay increases into pension calculations.

Gains and losses can also arise from adjustments in actuarial assumptions.