The prior service cost is the cost of retroactive benefits (i.e., those granted for service prior to the time the benefits are granted granted in a plan amendment.
prior service cost
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amortized prior service cost
Amortized prior service costs are one of the five components of pension expense. The other components are service cost, interest cost, expected return on plan assets, and amortized gains or losses.
amortized gains or losses
Often referred to as the actuarial gains or losses, this is one of five components of pension expense. The other components are service cost, interest cost, expected return on assets and amortized prior service cost.