assign1 - the following methods: a. accrued benefit cost...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ASSIGNMENT #1 Date Assigned: January 15, 2007 Date Due: January 29, 2007 I. Exercise 3-3 Aitken – Page 101 II. Data Plan effective date: January 1, 1997 Normal retirement benefit: $50 per month for each year of service All employees were hired at age 25. There is one person age 65 who is about to retire, but whose pension has not commenced nor has it been purchased as of January 1, 2007. Plan assets on January 1, 1997: 0 Plan assets on January 1, 2007: $500,000 Census data on January 1, 2007 and commutation functions: Age x Number of Participants D X N X -N 65 25 3 16 250 35 4 8 100 45 6 4 40 55 3 2 10 65 1 1 0 ä 65 (12) = 10, Valuation Interest Rate = 6%. Questions (show all work) 1. Calculate the normal cost and unfunded liability as at January 1, 2007, for each of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the following methods: a. accrued benefit cost method b. entry age normal cost method c. individual level premium cost method d. aggregate cost method 2. Under the entry age normal, frozen initial liability cost method, what is the normal cost as at January 1, 2007, assuming the initial unfunded liability is being amortized over 15 years and that all payments have been made when due? 3. Under the attained age normal (aggregate form) cost method, what is the normal cost as at January 1, 2007, assuming the initial unfunded liability is being amortized over 15 years and that all payments have been made when due?...
View Full Document

This note was uploaded on 09/27/2009 for the course ACT 472 taught by Professor Unknown during the Winter '07 term at University of Toronto- Toronto.

Ask a homework question - tutors are online