Reducing pension expenses for a frozen plan By Michael Mikhitarian | 12 December 2017 Client’s challenge Our client’s plan has been frozen for several years. Years of unfavorable discount rate changes and lower-than-expected asset returns have caused the unrecognized loss to become a large component of their balance sheet. Because the plan is frozen, the amortization period for the loss has decreased each year, causing the loss amortization to be the largest component of pension expense. Controlling pension expense is important to our client and they reached out to us to find a simple and effective strategy to reduce pension expense. Potential solutions Pension expense is made up of a number of items such as service cost, interest cost, expected asset return, and several amortizations of p

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