These retroactive benefits should notbe recognized as pension expense entirely in the year of amendment but should be recognized during the service periods of those employees who are expected to receive benefits under the plan. The cost of the retroactive benefits is the increase in the projected benefit obligation at the date of the amendment (or initial adoption.)

Prior service costs should be amortized by assigning an equal amount to each future period of service of each employee active at the date of the amendment who is expected to receive benefits under the plan.

Consistent use of an alternate amortization approach that more rapidly reduces the unrecognized cost of retroactive amendment is acceptable. For example, a straight-line amortization of the cost over the average remaining service period of employees is acceptable.