assign2 - Aggregate Cost Methods, calculate the following:...

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ASSIGNMENT #2 Date Assigned: January 29, 2007 Date Due: February 12, 2007 ASSUMPTIONS Interest Rate: 6.00% Expected Retirement Age: 65 ä 65 (12) 10.50 V (Interest Only) 0.943396 Actual Investment Return Year 1 6.00% Amortization Initial Unfunded Liability Amortization Period 15 Amortization Factor 0.097135 Gains and Losses Amortization Period 5 Amortization Factor 0.223959 OTHER ASSUMPTIONS All contributions made on first day of year to which they relate. No pre-retirement death or termination of employment is assumed.
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QUESTIONS XYZ Corporation was formed 25 years ago. On January 1, 2006, it has the 3 employees indicated below: Employee Age Service 1 56 25 2 39 5 3 33 1 XYZ has adopted a non-contributory pension plan (as of 1/1/06) with a $60 per month per year of service benefit formula. First Year Calculations For each of the Unit Credit, Entry Age Normal, Individual Level Premium, FIL(UC) and
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Unformatted text preview: Aggregate Cost Methods, calculate the following: 1. the first year normal cost 2. the initial accrued liability 3. the total contribution for the first year Second Year Calculations As of January 1, 2007, the XYZ Corporation employee census is unchanged, except that each employee is one year older and has one additional year of service. The pension fund earned 6.0%, as expected, during 2006. The contributions due were made on January 1, 2006. Calculate the following for each of the Unit Credit, Entry Age Normal, Individual Level Premium, FIL(UC) and Aggregate Cost Methods: 1. the second year normal cost 2. the 1/1/07 accrued liability 3. the pension fund on 1/1/07 4. the total contribution for the second year...
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assign2 - Aggregate Cost Methods, calculate the following:...

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