Expected Return on Plan Assets

Definition: Expected Return on Plan Assets is a component of net periodic pension cost equal to the long-term expected rate of return multiplied by the market-…

Expected Return on Plan Assets is a component of net periodic pension cost equal to the long-term expected rate of return multiplied by the market-related value of plan assets at the beginning of the period. It reduces pension expense (it is subtracted in the formula). Differences between expected and actual returns generate actuarial gains or losses that are typically deferred and amortized through accumulated other comprehensive income under ASC 715.