This method follows the basic premise of any actuarial process in that costs and benefits must be equal. Accounting for pensions involves assumptions on both sides of the equation. When reviewing a company's financial statements investors should note whether the company is being aggressive or conservative in these assumptions. For example, if a company uses a very high rate of return on its plan assets, this will reduce the current costs to fund its pension plan.
Information on pension contributions and assets can be found in company's quarterly and annual reports to the Securities and Exchange Commission.