Net periodic pension cost definition

What is Net Periodic Pension Cost?

Net periodic pension cost is the cost of a pension plan for a reporting period, as stated in an employer’s financial statements. This cost includes the following components:

  • Actual return on plan assets

  • Amortization of prior service cost or credit

  • Gain or loss

  • Interest cost

  • Service cost

Related AccountingTools Course

Accounting for Retirement Benefits