the pbo was $100 million at the beginning of the year and $106 million at the end of the year. service cost for the year was $12 million. at the end of year, pension benefits paid by the trustee were $8 million. the actuary's discount rate was 5%. at the end of the year, the actuary revised the estimate of the percentage rate of increase in the compensation levels in upcoming years. what was the amount of the gain or loss in the estimate change caused? (enter your answer in million, round to the nearest million, without dollar sign, ex. 123 or -123).

Employees who participate in defined benefit plans will get a fixed, predetermined benefit upon retirement. The fixed benefit offered by this kind of plan is frequently valued by employees. Businesses can typically contribute (and thus deduct) more annually than in defined contribution plans on the employer side. However, compared to other types of plans, defined benefit plans are frequently more complicated and therefore more expensive to establish and maintain.

All amounts are in millions:

Beginning plan benefit obligation = 100

Service cost = 12

Interest cost (100*5%) = 5

Total = 117

Less: benefits paid = -8

Total = 109

Less: Ending Plan Benefit Obligation = 106

The gain in the estimate change = 3

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