D Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, D will grant employees in Plan 2 additional pension benefits of P240,000 based on their past service. Employees in this plan have an average period to vesting of 8 years. Plan 1 will be amended to reduce benefits by P120,000 (in exchange, employees will receive increased contributions to the company’s defined contribution plan). Employees in this plan have an average period to vesting of 6 years. What is the total past service cost included in pension expense 2016?

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Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.